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A COMPANY run by former American International Group Inc Chief Executive Maurice “Hank” Greenberg has sued the United States, claiming that the government takeover of the insurer was unconstitutional.
The lawsuit filed on Monday in the US Court of Federal Claims in Washington, DC seeks at least $25bn for Greenberg’s Starr International Co and other shareholders.
Starr said that in bailing out AIG and taking a nearly 80% stake, the government took property from other shareholders. It said this violated the Fifth Amendment, which bars the taking of private property for public use, without just compensation.
The Treasury Department did not immediately respond to a request for comment. AIG spokesman Mark Herr declined to comment. AIG was named as a nominal defendant in the lawsuit.
The lawsuit filed on Monday in the US Court of Federal Claims in Washington, DC seeks at least $25bn for Greenberg’s Starr International Co and other shareholders.
Starr said that in bailing out AIG and taking a nearly 80% stake, the government took property from other shareholders. It said this violated the Fifth Amendment, which bars the taking of private property for public use, without just compensation.
The Treasury Department did not immediately respond to a request for comment. AIG spokesman Mark Herr declined to comment. AIG was named as a nominal defendant in the lawsuit.
