Shareholder Suit Accusing AIG Of Waste Tossed

Law360, New York (March 31, 2010, 3:44 PM EDT) -- A federal judge has swept aside a shareholder derivative lawsuit accusing American International Group Inc. of corporate waste and breach of fiduciary duty over its disastrous exposure to mortgage-related liabilities, ruling that the plaintiffs did not seek redress through the global insurer's board.

Judge Laura Taylor Swain's ruling, issued Tuesday in the U.S. District Court for the Southern District of New York, also terminated seven motions to dismiss, lodged by individual defendants including former company CEO Martin J. Sullivan, in light of her decision that the...
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