AIG mulls suing US gov’t over bailout

NEW YORK (AP) -- AIG is considering whether the company should join a lawsuit against the government that spent $182 billion to save it from collapse.

American International Group Inc. said its board of directors will weigh whether to take part in a shareholder lawsuit against the US over the government’s $182-billion bailout of the New York-based insurer.

If AIG decides to join the complaint, which seeks $25 billion in damages, it would pit the company against the government that in 2008 kept it from buckling under the weight huge losses on mortgage-backed securities and other toxic assets.

AIG said that after Wednesday’s meeting, its directors should have a decision by the end of the month.

Starr International Co. Inc., the investment firm of former AIG CEO Maurice Greenberg, filed the lawsuit in November 2011 on behalf of the firm and AIG shareholders.

Show comments