AIG sees low chance of Greenberg lawsuit success
January 28, 2013 by Arthur D. Postal
Starr International and Maurice “Hank” Greenberg, its controlling shareholder, have “no more than a 20 percent” chance of winning damages from the government in its lawsuit claiming that that the government acted punitively against its shareholders when it acted to bail out American International Group starting in September 2008, AIG’s lawyers have told its board.
The opinion on the viability of the Starr lawsuit against the government was made by Paul C. Curnin, AIG’s lawyer at Simpson Thacher & Bartlett LLP, in New York, during the Jan. 9 meeting where AIG’s board considered Starr/Greenberg’s request that AIG join the lawsuit.
It was at that meeting that the AIG board decided not to join the lawsuit, and doing so in such a way that even in the event Starr/Greenberg won the lawsuit, AIG would not benefit. Click here to read…