A federal judge in Manhattan has blasted a pair of private equity executives, both of whom are also lawyers, for asking him to make allegations against them “disappear” after the settlement of a suit that accused them of “fundamentally dishonest behavior.”

American International Group Inc. filed suit Feb 1. against two former top executives of its AIG Capital Partners private equity arm, Chief Executive Peter Yu and General Counsel William Jarosz. The insurance giant accused them of stealing confidential client information from AIG computers to help them launch a new private equity fund.

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