AIG board to consider potentially joining $250 billion shareholder lawsuit against the US - InfoNews

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AIG board to consider potentially joining $250 billion shareholder lawsuit against the US

People pass the AIG building, in New York, Tuesday, Jan. 8, 2013. American International Group Inc. said Tuesday its board of directors will weigh whether to take part in a shareholder lawsuit against the U.S. over the government's $182 billion bailout of the insurer. (AP Photo/Richard Drew)
January 08, 2013 - 4:22 PM

NEW YORK, N.Y. - American International Group Inc. says its board of directors will weigh whether to take part or try to block a shareholder lawsuit against the U.S. over the government's $182 billion bailout of the insurer.

AIG said that its directors will take up the matter on Wednesday and expects they will have a decision by the end of the month.

Starr International Co. Inc., the investment firm of ex-AIG CEO Maurice Greenberg, filed the lawsuit on behalf of the firm and AIG shareholders.

The complaint asserts that the government didn't provide shareholders just compensation when it took a nearly 80 per cent stake in the insurer as part of its 2008 bailout.

AIG's board must consider whether to take over the lawsuit or allow Starr to continue to pursue the complaint.

News from © The Associated Press, 2013
The Associated Press

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