BUSINESS

AIG board to consider potentially joining $250 billion shareholder lawsuit against the US

01/08/2013 07:22 EST | Updated 03/10/2013 05:12 EDT
NEW YORK, N.Y. - American International Group Inc. says its board of directors will weigh whether to take part or try to block a shareholder lawsuit against the U.S. over the government's $182 billion bailout of the insurer.

AIG said that its directors will take up the matter on Wednesday and expects they will have a decision by the end of the month.

Starr International Co. Inc., the investment firm of ex-AIG CEO Maurice Greenberg, filed the lawsuit on behalf of the firm and AIG shareholders.

The complaint asserts that the government didn't provide shareholders just compensation when it took a nearly 80 per cent stake in the insurer as part of its 2008 bailout.

AIG's board must consider whether to take over the lawsuit or allow Starr to continue to pursue the complaint.