(Bloomberg) — American International Group Inc., which opted against joining Maurice "Hank" Greenberg in a suit against the U.S., became a victor in the case after a judge ruled that the former chief executive officer isn't entitled to compensation over the insurer's 2008 rescue.
AIG climbed 2.1 percent to $63.16 at 1:06 p.m. in New York. The stock could've dropped as much as 3.5 percent if the U.S. was forced to pay damages, because of concerns that the government would turn to AIG to recover costs, Thomas Gallagher, an analyst at Credit Suisse Group AG, said in April.
U.S. Court of Claims Judge Thomas Wheeler said Monday that the U.S. set illegal terms in the bailout and didn't have authority to take equity in exchange. The judge said that his ruling didn't create a legal right of recovery to shareholders, including Greenberg, who had sought at least $25 billion in damages.
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