The American International Group already ruled out suing the federal government over its bailout during the financial crisis, and now it is asking a federal judge to stop its former chief executive from suing in its name, the New York Times DealBook blog reported yesterday. The insurer has formally demanded that its onetime leader, Maurice R. Greenberg, stop pursuing derivative claims in his $25 billion lawsuit against the government that would allow him to fight on the company's behalf. AIG's request, made late on Friday in the Court of Federal Claims in Washington, D.C., does not seek to bar Greenberg’s claims on behalf of himself and other shareholders. The former chief, through his Starr Investment vehicle, has contended that the "onerous" terms of the bailout wrongly cost AIG investors billions of dollars.
