Maurice Greenberg, former head of the American International Group (AIG), recruited prominent Wall Street players to contribute several million dollars to a lawsuit that alleges the US government bailout of AIG in 2008 was unfair to company shareholders.
Greenberg, who still owns a large stake in AIG, filed the suit on behalf of his fellow shareholders. They will argue when the trial begins in Washington next week that though AIG needed the $182 billion rescue to avoid bankruptcy amid an unprecedented financial crisis, the government’s actions were unduly harsh.
Three prominent investors agreed to finance around 15 percent of the case’s legal costs, which have reached tens of millions of dollars, sourcestoldThe New York Times. The investors are entitled to a cut of any damages Greenberg and shareholders collect from the US.