(NEW YORK) — The giant insurance company AIG, which was saved from collapse by a $182 billion taxpayer-funded bailout, is reportedly considering joining a lawsuit against the government.
According to The New York Times, the complaint claims shareholders were cheated by the terms of the bailout, which included high interest rates and billions in payments to AIG’s Wall Street clients.
The newspaper reports the lawsuit was filed in 2011 by 87-year-old former boss Maurice Greenberg, a major investor who ran AIG for more than four decades.
The lawsuit claims the terms of rescue were too harsh, and that shareholders were deprived of tens of billions of dollars, which violated the Fifth Amendment prohibiting seizure of private property for “public use, without just compensation.”
According to The Times, AIG board members will meet on Wednesday in New York to hear a presentation about joining the shareholder suit.
Copyright 2013 ABC News Radio
Wayne Drash, CNN
Billy Hallowell, Deseret News