(Reuters) – Former American International Group Inc Chief Executive Maurice "Hank" Greenberg may pursue a $25 billion lawsuit accusing the U.S. government of engineering an unconstitutional bailout of the insurer, a federal judge ruled.
Judge Thomas Wheeler of the U.S. Court of Federal Claims allowed most of the case brought on behalf of Greenberg's company Starr International Co, which once held a 12 percent AIG stake, to proceed, while dismissing some claims.
Starr sued the government last November, saying its taking of a 79.9 percent AIG stake and extending an $85 billion credit line with an onerous initial 14.5 percent interest rate deprived shareholders of their due process and equal protection rights.
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