WILMINGTON, Del. (CN) – Directors of American International Group failed to get a required vote by common shareholders for the federal government’s $85 billion acquisition of a 79.9% equity interest in the company, shareholders say in a class action in Chancery Court.
Plaintiffs say the defendant directors and the government bypassed the shareholders’ voting requirement, and diluted their shares, by issuing Super Voting Preferred stock that is convertible into common stock, and the accompanying right to vote in the shareholders’ meeting.
They want the dilution of shares and the new shares declared invalid.
They are represented by Andre Bouchard with Bouchard Margules & Friedlander.