NBC reports that the trial in the U.S. Court of Federal Claims, Starr International Co. v. U.S., 11-cv-00779, is winding down, with the taking of evidence to be concluded this week, and the post-trial briefing to begin. So stay tuned. The end is not yet in sight.
For the above NBC summary, go to http://www.cnbc.com/id/102205523
In case you have not been following this litigation, Starr International is suing on behalf of former AIG shareholders, seeking some $40 billion. The plaintiffs’ argument is that the terms of the feds’ bailout of AIG (and the temporary seizure of some 80% of its stock) amounted to an uncompensated taking of AIG’s property, for which they seek just compensation.
This does appear to be a taking, but in our opinion, AIG’s problem is that it all worked out in the end, and when the dust settled and when AIG got its stock back, AIG made a bundle, and so did Uncle Sam. So if you apply hornbook eminent domain law to this caper, any recovery to which AIG may be entitled, will have to reduced by the amount of AIG’s benefits — which may produce no net recovery for the Starr International plaintiffs. So stay tuned and see how it turns out.