Michigan Suit Challenging AIG Bailout on Religious Grounds Proceeds

June 4, 2009

A Michigan man who is challenging the government's bailout of American International Group has won an early legal victory.

U.S. District Judge Lawrence Zatkoff recently refused to dismiss a lawsuit filed in December on behalf of Kevin Murray of Washtenaw County.

Murray claims the AIG bailout is illegal because the insurer has financial products that comply with Sharia principles and promote religion, specifically Islam.

Zatkoff says "unfathomable'' pressure faced by the government to handle the national financial crisis doesn't justify departing from the Constitution. He says the case raises questions about whether the government is promoting religion.

Zatkoff says it's inappropriate to dismiss the lawsuit while the case still is being developed. The government says the AIG bailout is not an endorsement of religion.