AIG class action settles 10 days after bailout

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Your tax dollars at work.

EAST ST. LOUIS - Class action attorneys of the Lakin Law Firm dropped a suit against insurer AIG like a hot potato when U.S. taxpayers bought the company.

Lakin client Thomas Springman withdrew a motion to certify a class action against AIG in U.S. district court at East St. Louis on Sept. 26.

"The parties have now reached a settlement in principle on an individual basis, subject to documentation," wrote Jonathan Piper of the Lakin firm.

Ten days earlier, Treasury Secretary Henry Paulson had announced that AIG would collapse if American taxpayers didn't prop it up.

He arranged for taxpayers to purchase 79.9 percent ownership of AIG.

Madison County Record | Lakin's AIG class action settles 10 days after bailout