AIG Smacked With Shareholder Action Over Payouts

Law360, New York (March 27, 2009, 12:00 AM EDT) -- A shareholder of American International Group Inc. has slapped the company and 19 current and former directors with a proposed class action seeking to force the board members to return all the bonuses and dividends they paid out while the troubled insurance giant's finances floundered.

Public interest group Freedom Watch Inc. filed the suit on behalf of AIG shareholders Thursday in the U.S. District Court for the Central District of California.

The defendants include current CEO Edward M. Liddy and former CEOs Robert B. Willumstad and...
To view the full article, register now.