A federal court judge in Washington has cleared for trial claims by former AIG CEO Maurice “Hank” Greenberg that the "federal government’s methodology in aiding a troubled American International Group amounted to an attempt to ‘steal the business.'" Greenberg refiled his suit last July through Starr International, which owns approximately 13 percent of AIG.
In his ruling Wednesday, Court of Claims Judge Thomas Wheeler dismissed all “derivative claims,” i.e. those filed on behalf of AIG. That was because, in January, AIG’s board decided not to join the lawsuit, and did so in such a way that even in the event Starr/Greenberg won the lawsuit, AIG would not benefit. AIG asked that it be dismissed as a derivative plaintiff in a court filing in April.
David Boies, Starr and Greenberg’s lawyer at Schiller & Flexner LLP, said, “We are pleased that the Court of Federal Claims has denied the motion of the U.S. and permitted Starr International to pursue the claims of two classes of AIG shareholders for tens of billions of dollars that the Government took without just compensation and/or illegally exacted in 2008 and 2009."
"We look forward to continuing discovery in this action and getting ready for trial in the fall of 2014,” Boies added.