Former AIG Folk Threaten Lawsuit Over Delayed Bonuses

In a move designed to make sure their neighbors throw extra eggs at their houses, a handful of former AIG employees are threatening to sue because they haven’t received bonuses as quickly as they had expected.

Of special note is that these aren’t just any AIG employees who happened to have lost their jobs when the insurance giant collapsed in 2008. No, these people used to work for the Financial Products division, the unit for bringing the company to its knees.

AIG, which is now 80% owned by the U.S. government, is reportedly holding back $21 million from retention bonuses from current and former Financial Products employees while the company investigates the bonuses to make sure the amounts are legit.

Part of their research is making sure these former AIG employees are accurately reporting the income they’ve received since exiting the company. Anything earned since leaving AIG is to be deducted from the bonus money. But lawyers for the one-time AIG-ers say their clients are tired of answering questions.

“They have asked them a series of questions, explaining that this part of their due diligence,” the legal eagle explained. “But those same questions have been asked and answered before already… They’ve had several months to determine whether or not any payment should be offset. Unless there’s a very quick payment made of the balance 25 percent, I think [a lawsuit] is inevitable.”

Ex-AIG employees might sue over lower payouts [Reuters]

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