AIG's Retreat From Starr Suit Seen As Only Real Option

Law360, New York (January 9, 2013, 7:59 PM EST) -- American International Group Inc. made a smart move Wednesday by shunning Starr International Co.'s $25 billion lawsuit against the government, according to experts, who say the heavy reputational costs associated with partnering up with Starr far outweighed any benefits.

Under much public scrutiny, AIG's board of directors decided not to stand behind former chief Maurice "Hank" Greenberg and Starr in their legal challenge to aspects of the U.S. government's bailout of the insurer during the financial crisis.

Starr — which was AIG's largest shareholder when the...
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