AIG sued for $100 million in bonuses by ex-derivatives staff

AIG argues that even if the employees had a valid claim, it would be subordinate to the other debts of the group. (AP Photo/Bebeto Matthews, File)

(Bloomberg) – American International Group Inc. was sued by former staff who say they were denied $100 million in bonuses amid public outrage over derivative trades that crippled the insurer and threatened the stability of global financial markets.

Details of the U.K. lawsuit, which was filed in 2014, emerged at a London court hearing Friday. The 23 traders, analysts and managers, who worked at a subsidiary of AIG Financial Products Corp., were denied deferred compensation because of “significant media and political pressure” resulting from the U.S. government’s rescue deal, according to documents their lawyers submitted for the preliminary hearing.