AIG shareholders win class-action status in lawsuit v US
Published on Mar 12, 2013 6:48 AM
(REUTERS) - Two groups of American International Group Inc shareholders won class-action status from a federal judge on Monday in a US$25 billion (S$31.2 billion) lawsuit by former Chief Executive Maurice "Hank" Greenberg over alleged losses caused by the United States (US) government's bailout of the insurer.
US Court of Federal Claims Judge Thomas Wheeler also appointed Greenberg's lawyer, David Boies, of Boies, Schiller & Flexner LLP, as lead counsel for the classes.
Greenberg's Starr International Co, once AIG's largest shareholder with a 12 per cent stake, sued the United States in 2011 over what eventually became a US$182.3 billion bailout for the New York-based insurer.
It said that by taking a 79.9 per cent AIG stake and then conducting a reverse stock split without letting existing shareholders vote, the government conducted an illegal taking that violated the 5th Amendment of the U.S. Constitution.
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here