The former chief executive of AIG is suing the US government for $25bn for its 'unconstitutional' takeover of the insurer in 2008.
Starr International, the company owned by Maurice Greenberg, which is also a large AIG shareholder, has filed two separate lawsuits against the Treasury the Federal Reserve Bank of New York.
The lawsuit against the Treasury claims the takeover of AIG discriminated against the company and its shareholders by charging excessive interest rates on loans from the government - 14.5% initially - and by taking an 80% interest in the company against the wishes of shareholders, the New York Times reports.
"The government is not empowered to trample shareholder and property rights even in the midst of a financial emergency," the lawsuit said.
Although Greenberg left AIG in 2005 following questions about the company's accounting standards, he was still its largest shareholder when it was bailed out.
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