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Starr International Co.’s lawsuit against the Federal Reserve Bank of New York over the government’s bailout of American International Group Inc. was dismissed by a federal judge in New York.

Starr, an AIG shareholder headed by the insurer’s former chief executive officer, Hank Greenberg, claimed the government used its 2008 bailout of the New York-based company to channel money improperly to its trading partners. U.S. District Judge Paul Engelmayer in Manhattan rejected the claims in a decision that was made public Nov. 16.

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