Two separate groups of shareholders have been granted class action status from a US Federal Court judge. The first one involves former AIG CEO Maurice "Hank" Greenberg over the losses incurred by the insurer for the bailout done by the US government. The other suit is for the credit agreement awarding the 79.9% stake becoming effective.
The first case alleges that Starr International Co, which Greenberg heads, had previously held 12% of stocks in the insurance giant. Their interest, alongside others were injured by the acceptance of a US$182.3 billion bailout and the issuance of a 79.9% share through a reverse stock split by the government without a shareholder vote is illegal under the Fifth Amendment of the US Constitution.
The second case is about the effectivity of the credit agreement taking effect as there was no right accorded the shareholders in approving the reverse stock split and the credit agreement.
The rest is yet to come.
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