AIG will not join lawsuit against US

AIG logo The $182bn rescue of AIG was the biggest of the 2008 financial crisis

Related Stories

The board of US insurance giant AIG has said that it will not join a $25bn (£16bn) shareholder lawsuit against the US government, which alleges that the terms of its rescue deal were unfair.

AIG came close to collapse at the height of the financial crisis and was bailed out by the government in 2008.

The lawsuit argues the bailout did not properly compensate shareholders.

It was filed by Starr International, headed by former AIG chief executive Maurice "Hank" Greenberg.

Starr had asked the board to join in or take the lead in the lawsuit, and the company had said that it would consider the demand at a board meeting on Wednesday.

But following the meeting AIG said in a statement: "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.

"AIG expects to file with the courts a formal statement detailing the Board's determination and the reasons underlying it in the coming weeks."

It added that by considering and ultimately refusing the demand, the board had properly and fully executed its fiduciary and legal obligations to AIG and its shareholders.

The $182bn government rescue of AIG was the largest of the 2008 financial crisis. The company says it has paid back $205bn including a $22.7bn profit.

The prospect of the insurer joining the lawsuit had already sparked anger in the US, particularly given the firm is currently in the middle of a "Thank you America" advertising campaign.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

Elsewhere on the BBC

  • Older ladyAge of happiness

    A Russian photographer documents inspirational seniors who are refusing to grow old


  • Robbie RogersHARDtalk Watch

    Gay footballer Robbie Rogers on locker room homophobia and the ‘pack mentality’ in soccer

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.