AIG Directors Sued to Force Immediate Return of Total Bonuses

/PRNewswire/ -- Today, Freedom Watch announced the filing of a class action lawsuit by shareholders of AIG to force the directors of the company to themselves pay back the millions in illicit bonuses, dividends and other perks they paid out to themselves and other officials who destroyed the company's financial standing.

The lawsuit, filed in the federal court in Los Angeles, is wide reaching and will accomplish what Congress cannot, given the patent illegality of its taxing scheme, which violates the U.S. Constitution as it would tax ex post facto and discriminately.

Larry Klayman, the Chairman and General Counsel of Freedom Watch, who represents the shareholders in their class action suit, issued this statement:

"Today, the American people, not the compromised ruling elite in Washington, D.C., have begun a second American Revolution to take the country back from the con men on Wall Street, and on Pennsylvania Avenue - who under successive administrations played a central role in the meltdown of the U.S. financial system and economy. Freedom Watch will not rest until justice is done and it won't come from the Obama administration, bent on deceiving the U.S. taxpayer that it intends to clean up this corruption, all the while lining the pockets of its friends at AIG with government bailout money, who gave handsomely to have the President elected."

The lawsuit also seeks to recover, from the directors, the losses of the shareholders of the last many months and years, as well as to make AIG whole under new leadership, without the use of government money.

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Gingrich Calls on Obama to End Bailouts

/PRNewswire-USNewswire/ -- Former Speaker of the House Newt Gingrich today called on the Obama administration to abandon the strategy of bailing out failing companies, and instead insist that companies choose bankruptcy or receivership as the only way to restore a sense of order and fairness to the economic system.

This includes AIG, who recent reports suggest is going to need another bailout even while rewarding its executives $165 million in bonuses.

In his weekly newsletter for HumanEvents.com, The Newt Gingrich Letter, Gingrich writes about the outrage over the bonuses being paid to AIG executives:

"The cure for our outrage is not merely, as President Obama is demanding, that AIG be prevented from paying its executives... Nor is it acceptable to ask Americans to keep throwing their tax dollars at failed companies and their leaders.

The answer is an old fashioned one: AIG should choose between receivership or bankruptcy. It should not be allowed to choose more bailouts from the taxpayer."

Gingrich continues:

"Thanks to the Bush-Obama-Geithner policy of bailing out failing companies, we now have the worst of all possible scenarios: A taxpayer subsidized, government supervised private company; an unsustainable public/private hybrid that is too public to make its own decisions and too private to be responsible to the taxpayers that are keeping it alive.

"Outrages like the fat cat bonuses currently dominating the headlines will only continue as long as the rule of politicians supplants the rule of law on Wall Street.

"Bankruptcy would replace the rule of politicians over U.S. financial institutions with the rule of law."

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