A U.S. Appeals Court has thrown out a suit against American International Group Inc. directors and officers, stating that the plaintiffs failed to show that the AIG officials were not acting in the best interest of the company as they faced the subprime market meltdown.
The U.S. Court of Appeals for the Second Circuit in New York City issued an opinion yesterday affirming a lower court ruling.
The court says that under Delaware incorporation law "directors are entitled to a presumption that they were faithful to their fiduciary duties" and that a shareholder bringing a derivative suit "bears the burden of 'overcoming that presumption.'"
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