New York — Fresh in the wake of being rescued, American International Group Inc. is facing a lawsuit from a public pension fund.
The lawsuit, which was brought by the City of New Orleans Employees' Retirement System, an AIG shareholder, accuses AIG of mismanagement of taking "grossly imprudent” risks that led to the insurer's collapse, and subsequent redemption this week.
The case was filed on Wednesday in Delaware Chancery Court, and names ousted AIG CEO Robert Willumstad, lead director Stephen Bollenbach and other current and former officers and directors at the company in the suit.
The plaintiffs are petitioning for the defendants to return to AIG all compensation they have been paid, along with other damages.
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