* Asks court to block derivative action
* AIG board already decided not to join suit
* Greenberg seeking more than $55 bln in damages
April 8 Insurer American International Group Inc
has asked a court to block Maurice "Hank" Greenberg's
efforts to sue the U.S. government on AIG's behalf, saying its
former CEO has not proven he should have the right to do so.
Earlier this year, AIG drew sharp criticism from members of
Congress and an outraged public when the firm considered the
possibility of joining Greenberg's lawsuit, which challenges the
terms of the insurer's $182.3 billion bailout by the federal
government in 2008.
AIG said Greenberg had forced its hand in even deliberating
the prospect, but that ultimately it did not want to sue anyway
amid a public backlash.
Absent AIG's participation, Greenberg is pursuing a
derivative claim, seeking to sue the U.S. government on AIG's
behalf over the terms of the $182.3 billion rescue. Greenberg
and his company Starr International, which owned 12 percent of
AIG before the rescue, are also suing the government directly.
But the insurer, in a filing dated Friday, said Starr had
not met the burdens necessary to be allowed to pursue claims on
the company's behalf.
"Starr has alleged no facts showing that the AIG board's
decision to refuse Starr's demand cannot be attributed to a
rational business purpose," AIG said.
The company said its board also feared "incalculable harm to
AIG's corporate brand and image and relationships with
shareholders, customers, regulators and elected officials" if it
pursued a lawsuit.
A spokeswoman for Starr's lawyer did not immediately respond
to a request for a comment. Last month Starr amended its
complaint, more than doubling the damages it is seeking to
roughly $55.5 billion.
The Case is Starr International Co Inc vs. United States,
U.S. Court of Federal Claims, No. 11-00779.