AIG decides not to join lawsuit against US government, after lawmakers' warnings

[WestVirginiaRebel]

Fox News:

American International Group's board of directors announced Wednesday that the bailed-out company will not join a lawsuit against the U.S. government -- after lawmakers repeatedly warned the firm not to bite the hand that fed it.

In announcing the decision not to join a shareholder lawsuit, board Chairman Robert Miller acknowledged the billions in taxpayer support provided to the company since the 2008 financial crisis.

"America invested in 62,000 AIG employees, and we kept our promise to rebuild this great company, repay every dollar America invested in us, and deliver a profit to those who put their trust in us," he said. "To date, AIG has returned $205 billion to America, including a profit of $22.7 billion. We continue to thank America for its support."

Starr International Co. Inc., the investment firm of former AIG CEO Maurice Greenberg, had filed the lawsuit in November 2011 on behalf of the firm and AIG shareholders.

The complaint asserts that the government didn't provide shareholders fair compensation when it took a nearly 80 percent stake in the insurer as part of its bailout.

AIG said that, by law, its board had to consider three options: take over the lawsuit and pursue the claims on its own; attempt to prevent the claims from being pursued by Starr; or allow Starr to continue to pursue the complaint on AIG's behalf.

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No lawsuit after all.