{"id":5689,"date":"2014-09-29T00:00:00","date_gmt":"2014-09-29T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/09\/shareholders_40b_class_action"},"modified":"2022-07-22T08:51:28","modified_gmt":"2022-07-22T13:51:28","slug":"shareholders-40b-class-action","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/shareholders-40b-class-action\/","title":{"rendered":"Shareholder\u2019s $40B Class Action Securities Lawsuit Over AIG Bailout Goes to Trial"},"content":{"rendered":"

The trial over whether the U.S. government unlawfully seized a majority stake in American International Group Inc. (AIG)<\/a> during the bailout has started. The securities case was brought by Starr International Co., which is the charitable and investment firm helmed by former AIG CEO Maurice R. Greenberg. Starr was the insurer\u2019s biggest shareholder when the company became a ward of the government at the height of the economic crisis.<\/p>\n

The lawsuit, now a class action case, claims that government violated the rights of shareholders to receive fair compensation under the U.S. Constitution. Some 300,000 AIG stockholders from 2008 and 2009, including AIG employees, large mutual fund companies, and retirees, would be entitled to any award issued to Starr. Greenberg wants about $40 billion in compensation over the government takeover and the high interest rates the U.S. charged for the loans. AIG is not one of the plaintiffs.<\/p>\n

The insurance giant got into financial trouble in the wake of the financial crisis mostly because of sales of an insurance of the unregulated variety to banks and others, which was intended to mitigate debt exposure risks. The government loaned AIG $85 billion in 2008 to keep it from falling into bankruptcy. In opening statements, Kenneth Dintzer, a lawyer for the U.S., noted that the insurance company\u2019 shareholders hugely benefitted from the efforts made to stabilize AIG. The government maintains that it had to bailout AIG to keep the world economy from collapsing.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The trial over whether the U.S. government unlawfully seized a majority stake in American International Group Inc. (AIG) during the bailout has started. The securities case was brought by Starr International Co., which is the charitable and investment firm helmed by former AIG CEO Maurice R. Greenberg. Starr was the insurer\u2019s biggest shareholder when the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3804,3760,3795,3761],"tags":[],"class_list":["post-5689","post","type-post","status-publish","format-standard","hentry","category-class-action-lawsuits","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis"],"yoast_head":"\nShareholder\u2019s $40B Class Action Securities Lawsuit Over AIG Bailout Goes to Trial — Investor Lawyers Blog — September 29, 2014<\/title>\n<meta name=\"description\" content=\"The trial over whether the U.S. government unlawfully seized a majority stake in American International Group Inc. 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