On April 22, David Boies made his closing argument on behalf of Maurice Greenberg, the insurance magnate suing the U.S. government for as much as $40 billion in damages stemming from the September 2008 bailout of Greenberg’s faltering former company, American International Group. AIG’s soured bets on the housing market had led the insurer to the precipice of insolvency, which might have set off a global depression. In return for an emergency $85 billion loan, AIG’s board agreed to turn over 80 percent of the company’s equity to the government. But Greenberg and fellow shareholders never had a chance to vote on the rescue—which, Boies told Judge Thomas Wheeler of the U.S. Court of Federal Claims in Washington, contributed to an unconstitutional abuse of AIG shareholders.
Given the urgency of AIG’s imminent failure, Judge Wheeler asked, couldn’t the board act on shareholders’ behalf?
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]