(Reuters) – Maurice "Hank" Greenberg, the former AmericanInternational Group Inc. chief executive, has more than doubled thesize of his class-action lawsuit against the United States over theinsurer's bailout to roughly $55.5 billion from $25 billion.

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In an amended complaint filed late Monday in the U.S. Court ofFederal Claims, Greenberg's Starr International Co said it is nowseeking damages over Maiden Lane III LLC, a vehicle designed to ridbanks of toxic debt underlying transactions with AIG.

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The claims are in addition to claims that Starr previouslyasserted over the government's taking of a 79.9 percent stake inAIG in September 2008, which was eventually swapped for 562.9million common shares.

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In the amended complaint, Starr said it is seeking to recover,on behalf of shareholders and the company, $23 billion over thegovernment's 79.9 percent stake, plus as much as $32.5 billion ofcollateral it said was given away through Maiden Lane III.

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It is also seeking unspecified damages related to AIG's 1-for-20reverse stock split in June 2009.

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Starr said the various actions constituted an illegal takingthat violated the 5th Amendment of the U.S. Constitution.

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AIG in January refused to help Starr pursue the lawsuit, and onTuesday reaffirmed that refusal.

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In an earlier version of the complaint, Starr estimated totaldamages as being "in no event less than $25 billion."

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This phrase does not appear in the new complaint, which was alsofiled by Greenberg's lawyer David Boies of Boies, Schiller &Flexner LLP.

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Prior to the bailout, Starr had held a 12 percent AIG stake,making it the largest shareholder of what had been the world'slargest insurer by market value.

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A U.S. Department of Justice spokesman was not immediatelyavailable for comment. Robert Dwyer, a partner at Boies, Schiller& Flexner, declined to comment.

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CLASS-ACTION LAWSUIT

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Starr filed the amended complaint a few hours after U.S. ClaimsJudge Thomas Wheeler awarded class-action status to two groups ofshareholders, which the judge said could number in the tens ofthousands, challenging the $182.3 billion AIG bailout.

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Maiden Lane III, named for the downtown Manhattan street whereAIG is based, was created by the Federal Reserve Bank of New Yorkto repurchase from AIG counterparties more than $62 billion ofassets linked to collateralized debt obligations.

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Starr said the repurchases, sometimes done at 100 cents on thedollar, was a "backdoor" bailout for Goldman Sachs Group Inc ,Societe Generale SA and other banks that had entered more than $400billion of credit default swaps with AIG.

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"Without any budgetary, regulatory, or other authority, FRBNYand its agents took or illegally exacted 79.9% equity and votinginterest from AIG in September 2008, (and) gave away AIG's legalrights and $32.5 billion of its collateral through the Maiden LaneIII transaction," the amended complaint said.

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Starr is separately appealing the November 2012 dismissal of itsrelated lawsuit against the New York Fed.

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U.S. District Judge Paul Engelmayer in Manhattan at the timesaid he found nothing to suggest that AIG directors were coercedinto accepting the bailout, which he called the result of"corporate desperation."

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AIG OPPOSES GREENBERG

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AIG decided on Jan. 9 not to join Greenberg's lawsuit, citingpotential harm to its reputation. Some politicians and voters hadrecoiled at the prospect that AIG might sue the same governmentthat had rescued it from collapse.

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Starr attacked this decision, saying it stemmed from governmentcoercion and justified its lawsuit on AIG's behalf.

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"The United States indicated it would wage a negative publicrelations campaign against AIG and its directors, terminate anycooperative relationship with AIG, and heavily scrutinize AIG'sSEC, tax, and other filings," Starr said in the complaint.

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Jim Ankner, an AIG spokesman, said the board is standing by thedecision and opposes the lawsuit by Greenberg, who had led theinsurer for nearly four decades before his 2005 ouster.

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"AIG will neither pursue these claims itself nor permit Starr topursue them in AIG's name," he said. "AIG will move to dismiss thederivative claims asserted by Starr in AIG's name."

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On March 1, AIG eliminated the government's last financial stakeby repurchasing warrants from the Treasury Department.

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The case is Starr International Co. v. U.S., U.S. Court ofFederal Claims, No. 11-00779.

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