Religion Suit Over AIG Bailout Survives Bid To Toss

Law360, New York (May 28, 2009, 12:00 AM EDT) -- A federal taxpayer suit claiming the $170 billion government bailout for American International Group Inc. violated the Constitution's Establishment Clause by supporting Islamic activities will go forward, over the objections of defendants the U.S. Department of the Treasury and the Federal Reserve Board.

Judge Lawrence P. Zatkoff in the U.S. District Court for the Eastern District of Maryland shot down the federal agencies' motion to dismiss the suit on Wednesday, ruling that plaintiff Kevin J. Murray had raised substantial questions as to whether the government had...
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