American International Group (AIG) issued a statement today confirming that its Board of Directors will consider, at a meeting scheduled for January 9, the demand served on the board on September 21, 2012, by Starr International Company, Inc. ("Starr") as to whether AIG will take over, or allow Starr to continue to pursue, a lawsuit that Starr filed on behalf of itself and other AIG shareholders contesting the Constitutionality of certain terms of the U.S. government's bailout of AIG in September 2008.
The insurer notes that under applicable law, as well as according to certain court rulings, the AIG Board must consider and respond to Starr's demand. It expects to do so by the end of January 2013.
In November 2011, Starr filed a lawsuit in the United States Court of Federal Claims and the United States District Court for the Southern District of New York alleging that the Government's 2008 receipt of a 79.9% equity interest in AIG constituted a wrongful "taking" without just compensation, in violation of the United States Constitution. The lawsuit makes claims on a "derivative" basis in the name of AIG and for its benefit, as well as on a "direct" basis on behalf of Starr and other similarly situated shareholders.
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