NEW YORK A federal judge in Manhattan has dismissed a $25 billion lawsuit filed by Starr International, an insurance company run by former American Inter-national Group chief executive officer Maurice “Hank” Greenberg, against the Federal Reserve Bank of New York over its 2008 bailout of AIG. Southern District Judge Paul Engelmayer rejected Starr’s arguments that the bailout was an illegal takeover of multinational insurance company AIG and a “backdoor bailout” for other financial firms that did business with it.
The lawsuit was filed last November on behalf of AIG’s shareholders. Starr, which owned about 12 percent of AIG, alleged the Federal Reserve effectively took control of AIG and then breached its fiduciary duty to shareholders under Delaware law by taking a two-thirds stake in residual profits from AIG’s credit default swaps and forcing AIG to pay its counterparties in full even when they offered concessions, among other conditions.
CITI AGREES TO PAY $360M TO END LEHMAN TRUSTEE SUIT
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
