The US Government has sought for dismissal of AIG's Ex-chief executive officer (CEO) Maurice Greenberg lawsuit relating to the 2008 takeover of American International Group (AIG).

The Starr International, a Greenberg’s company has sued the US government in 2008 in the US Court of Federal Claims on behalf of itself and other AIG shareholders seeking $25bn and arguing the takeover was unconstitutional, according to Reuters.

The US said in its filing, "Starr demands that the court second guess AIG and rewrite the rescue agreement by making American taxpayers pay an additional $25bn, based upon a market valuation of AIG after the rescue."

The US government has argued with AIG following its statements for rescue, "electing to save itself from a failure of its own making."

The government said any loss resulting from that agreement should be borne by AIG and its shareholders, and not the public even though Starr may disagree with the terms to which AIG agreed following the US Court of Federal Claims filing.

AIG bailout was revised at least four times before reaching $182bn which pawed way to collapse almost after bets tied to the housing market soured.