current shareholders will not foot the bill. In the agreement AIG was released on monetary responsibility if the gov was found to have acted illegally. The gov was found to have acted illegal so even if damages were awarded "current" AIG would not be responsible.
The decision would have to be totally reversed to make shareholders liable. Govt not guilty, and damages awarded. Not going to happen.
At expiration you convert the value of the warrant into common stock.
Say at expiration you have $100k with of warrants (Whatever price that maybe). You then covert the 100k to AIG shares at the adjusted strike price.
You can either put up more cash to purchase the full amount of shares the warrant will allow, or take a lesser amount based on the warrants instrinic value. Contact your broker to see if they will allow this.
Google cashless warrant exercise also.
You could also buy the shares on margin at a value equal to your warrants minus taxes then immediately sell your warrants the day before expiration. Same thing as a cashless exercise.:)