AIG board to intends to consider Starr demands

theflyonthewall.com

American International Group confirmed that the AIG board of directors will consider, at a meeting scheduled for January 9, the demand served on the AIG board of directors on September 21, 2012, by Starr International Company as to whether AIG will take over, or allow Starr to continue to pursue, a lawsuit that Starr filed on behalf of itself and other AIG shareholders contesting the Constitutionality of certain terms of the U.S. government's rescue of AIG in September 2008. By its demand, Starr requests that the AIG Board authorize AIG to assume control of the claims that Starr is pursuing in AIG's name or allow Starr to pursue these claims on AIG's behalf. Starr's complaint seeks approximately $25B in damages. The board has three options with respect to the derivative claims asserted on its behalf: take over Starr's claims and prosecute them on its own; refuse the demand and prevent the claims from being prosecuted by Starr, a decision Starr is likely to challenge; or allow Starr to prosecute the claims on AIG's behalf. It is the AIG board's obligation and intention to consider seriously Starr's demand and respond to it in a manner that the board believes is in the best interest of the company, taking into account all the relevant circumstances.

Rates

View Comments (0)