Judge Nixes Catholic Man's Suit Over AIG Bailout

Law360, New York (January 14, 2011, 8:09 PM ET) -- A federal judge on Friday tossed a lawsuit alleging the U.S. government's $182 billion bailout of American International Group Inc. was unconstitutional because some of the funds were used to support Islamic activities.

Judge Lawrence P. Zatkoff in the U.S. District Court for the Eastern District of Maryland granted the U.S. Department of the Treasury and the Federal Reserve Board's motion for summary judgment and denied plaintiff Kevin Murray's summary judgment motion — ruling that the bailout did not create an "excessive entanglement" with religion, as...
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