Amid public rage, AIG opts out of lawsuitBy BEN BERKOWITZ
January 09. 2013 10:15PM
AIG had been weighing whether to join a lawsuit filed by its former chief executive, Hank Greenberg, and his company Starr International, which owned 12 percent of the insurer before its 2008 rescue.
Greenberg alleges the rescue was unfair to shareholders, and that the Federal Reserve Bank of New York charged an excessive interest rate on its initial loan. He has sought billions of dollars in damages.
AIG said the board carried out its legal and fiduciary duty to consider the possibility of joining Greenberg's suits before making its decision.
"America invested in 62,000 AIG employees, and we kept our promise to rebuild this great company, repay every dollar America invested in us, and deliver a profit to those who put their trust in us," Chairman Steve Miller said in a statement.
AIG said it would not pursue Starr's claims nor would it allow Starr to pursue them on AIG's behalf, which sets the stage for a fresh legal fight between Greenberg and the company.
The idea AIG might sue the government struck a raw nerve with the public, which took to the Internet to vent its anger at what it viewed as the company's audacity.
The volume of AIG mentions on Twitter rose more than 50-fold Tuesday, according to Topsy Analytics.