AIG board weighing joining suit against US
The logo for American International Group Inc. (AIG) is displayed at their annual shareholders meeting.
Bloomberg via Getty Images
Posted: 01/09/2013
Last Updated:
133 days ago
NEW YORK - American International Group Inc.'s board today will take up whether to join or try to block a shareholder lawsuit against the federal government over the insurer's $182 billion bailout by the government.
Starr International Co. Inc. -- the investment firm of former AIG CEO Maurice "Hank" Greenberg -- filed the lawsuit on behalf of the firm and AIG shareholders. The complaint asserts the government didn't provide shareholders just compensation when it took a nearly 80 percent stake in the insurer as part of the bailout.
AIG says by law its board of directors must consider the matter. A decision from the company could come by the end of the month.
The possibility the company could join the suit has already sparked a response from lawmakers. Massachusetts Congressman Michael Capuano and Vermont Congressman Peter Welch have sent the company a letter warning against the move, calling it the height of corporate ingratitude.
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