The lawsuit was originally filed in 2011 by Starr International, a company headed by longtime AIG CEO Hank Greenberg, and other shareholders. The plaintiffs claimed that, while the bailout was necessary to save the company from collapse, the government’s takeover of company stock violated the Fifth Amendment by not providing shareholders sufficient compensation.
“The AIG Board has determined to refuse Starr’s demand in its entirety, and will neither pursue these claims itself nor permit Starr to pursue them in AIG’s name,” reads a statement released this afternoon.
“America invested in 62,000 AIG employees, and we kept our promise to rebuild this great company, repay every dollar America invested in us, and deliver a profit to those who put their trust in us,” writes AIG Chair Steve Miller.
A rep for the plaintiff said that the AIG board is acting “contrary to the shareholders’ interests” by opting not to pursue the lawsuit.
AIG Won’t Join Greenberg Lawsuit [WSJ.com]