A New York state appeals court has ruled that former CEO of American International Group (AIG) Maurice "Hank" Greenberg was permitted to pursue large parts of his defamation suit against former New York Attorney General Eliot Spitzer, Reuters reports.

The charges "adequately stated that Spitzer acted with actual malice" in scrutinizing Greenberg, with the intention of damaging Greenberg's reputation and career while propping up his own, Justice Cheryl Chambers wrote.

"We are, of course, pleased with the appellate court's decision, which will now permit Mr. Greenberg's claims to proceed to trial," Greenberg's lawyer David Boies said.

The decision by the Appellate Division in Brooklyn comes just seven months after Greenberg agreed to a $9 million settlement with current state attorney Eric Schneiderman over civil accounting fraud allegations brought by Spitzer in 2005.

More of What's Trending on TheStreet:

More from Stocks

Don't Move Into Homebuilder PulteGroup Right Now

Don't Move Into Homebuilder PulteGroup Right Now

Everything You Need to Know About Closed-End Funds to Boost Your Portfolio

Everything You Need to Know About Closed-End Funds to Boost Your Portfolio

Little Volatility as Headline Stories Go Into Holding Pattern

Little Volatility as Headline Stories Go Into Holding Pattern

Dow Sinks on Trade Worries, Washington Turmoil

Dow Sinks on Trade Worries, Washington Turmoil

Sears CEO Eddie Lampert's Latest Idea to Save Dying Retailer Hints End Nearing

Sears CEO Eddie Lampert's Latest Idea to Save Dying Retailer Hints End Nearing