May 9 A federal appeals court on Tuesday said
the U.S. government did not commit an "illegal exaction" harming
American International Group Inc shareholders led by
former Chief Executive Maurice "Hank" Greenberg when it bailed
out the insurer in 2008.
The Federal Circuit Court of Appeals in Washington, D.C.
also said Greenberg's Starr International Co did not have legal
standing to pursue claims over the government's acquisition of
AIG stock, because those claims belonged exclusively to AIG.
Tuesday's decision vacated part of a lower court ruling that
the U.S. Federal Reserve exceeded its authority in engineering
the buyout. No damages had been awarded in that ruling.
(Reporting by Jonathan Stempel in New York)