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Government asks court to dismiss $25 billion AIG suit

Says public should not have to bear the cost of the suit

The U.S. government has had quite enough of former American International Group Inc. (AIG) CEO Maurice Greenberg and his $25 billion lawsuit. In a filing on Thursday, the government asked the U.S. Court of Federal Claims to dismiss the suit, which claims the federal takeover of the insurer in 2008 was unconstitutional.

The suit, which Greenberg’s company Starr International Co. filed in November 2011, seeks to force the government to pay shareholders for AIG’s plummeting stock price. In Thursday’s filing, the government wrote that whatever Starr’s issues are with the terms of the AIG agreement, the public should not have to bear the cost.

“Starr demands that the court second guess AIG and rewrite the rescue agreement by making American taxpayers pay an additional $25 billion, based upon a market valuation of AIG after the rescue,” the filing reads.

Read more at Thomson Reuters.

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