New York Attorney General Eric Schneiderman asked a federal judge to dismiss a lawsuit filed by American International Group Inc. against the state’s Department of Financial Services and its superintendent, Benjamin Lawsky, saying the insurer is trying to interfere with a government probe.

“The investigation of AIG is not complete, and it remains to be seen what statutory violations, if any, would be charged,” Schneiderman said in a memo to U.S. District Judge Alison Nathan in Manhattan. “The present case is thus a textbook example of a suit where a federal court need not and should not exercise jurisdiction.”

AIG, based in New York, sued Lawsky and his office in April to block the state’s top financial regulator from fining it for selling insurance overseas without a state license.

The case relates to life insurance sales.
The insurer claims the state law is unconstitutional, violates its free-speech rights and discriminates against out-of-state commerce.

AIG was rescued by taxpayers in a bailout that began in 2008 and swelled to $182.3 billion. The insurer finished repaying the U.S. in 2012.

The case is American International Group Inc. v. New York State Department of Financial Services, 14-cv-2355 U.S. District Court, Southern District of New York, (Manhattan).