After publicly flirting with the idea of joining a $25 billion lawsuit against the federal government over the terms of the 2008 bailout, American International Group (AIG) has opted to stay out of court.
The Associated Press reports that the insurance giant reacted to negative responses to news reports that it might pursue the lawsuit, which argues that the federal bailout of the company deprived shareholders of billions of dollars and violated the Fifth Amendment tenet on taking private property ‘for public use, without just compensation.’ The government took control of a 92% stake in the company following the 2008 crash via a $182 billion bailout; AIG subsequently repaid its bailout funds, and the government says it made a $22.7 billion profit from the transaction.
‘The board of directors properly and fully executed our fiduciary and legal obligations to AIG and its shareholders,’ said Robert S. ‘Steve’ Miller, chairman of AIG's board of directors, in a press statement. ‘We kept our promise to rebuild this great company, repay every dollar America invested in us, and deliver a profit to those who put their trust in us.’