BURLINGAME, Calif. (KCBS) -- A Bay Area law firm has filed legal action to recover the $165 million in bonuses paid out to the top executives of the American International Group, a company that received $170 billion in federal bailout.
The lawsuit reflects the widespread outrage over rewarding AIG executives.
AIG claims it was under contractual obligation to award the employee bonuses, but Joseph Cotchett of Cotchett, Pitre & McCarthy in Burlingame disagrees. He says those employee contracts should have been voided.
KCBS' George Harris Reports
President Obama is working as quickly as possible with Congress to find ways to block the bonuses, but Cotchett is not confident they will succeed.
"It would be wonderful, but when was the last time you saw the government move quickly? The government's known about these bonuses, now it's coming out, for the past six months," said Cotchett.
Political experts warn that the outrage over the AIG bonuses could eventually hurt President Obama's popularity.
KCBS' Susan Leigh Taylor Reports
AIG mailed out the bonus checks last Friday. At least 73 employees reportedly received a million dollars or more. Cotchett's lawsuit seeks to recover the money for taxpayers.
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