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AIG Backs Down on Shareholder Lawsuit After Outcry

HeadlineJan 10, 2013

The insurance giant American International Group, AIG, has announced it will not join a shareholders’ lawsuit against the U.S. government over the terms of its bailout after news that it was considering doing so sparked outrage. Reports emerged this week that AIG’s board was weighing whether to take part in a suit by former CEO Maurice Greenberg that alleges the company’s 2008 bailout shortchanged investors and violated their Fifth Amendment rights. The news had come just two weeks after AIG finally repaid the $182 billion in federal money it received to keep it from collapse, prompting a rebuke from lawmakers who warned AIG against trying to sue taxpayers.

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