Judge Tosses Suit Over AIG
Ex-CEO Claimed New York Fed Breached Fiduciary Duty to Insurer's Shareholders
By Chad Bray
Updated Nov. 19, 2012 11:56 am ET
American International Group Inc. former Chief Executive Maurice "Hank" Greenberg has suffered a setback in his ongoing dispute with the federal government over its handling of the $182 billion bailout of the troubled insurer.
A federal judge in Manhattan dismissed a $25 billion lawsuit by Starr International Co., which Mr. Greenberg runs, against the New York Federal Reserve Bank over claims the Fed breached its fiduciary duty to AIG's shareholders in the rescue during the U.S. financial crisis. It is one of two lawsuits Starr, AIG's largest shareholder at the time of the government takeover, is pursuing over the bailout.