The hits keep coming for American International Group (AIG: sentiment, chart, options). Not only did Standard & Poor's (S&P) warn on Wednesday that it may slash its credit ratings on the insurance firm's property and casualty insurance units, but the former Dow member is also facing a lawsuit from disgruntled investor Wilma Walker.

First, S&P placed AIG's property and casualty units on CreditWatch Negative late yesterday. The ratings firm observed that American International Group is in a "somewhat weakened position," and analyst Rodney Clark stated, "Although at this point we have not seen clear evidence of long-term damage to AIG's franchise, there have been wide reports that competitors are actively pursuing AIG's accounts and key underwriting personnel, which could pressure operating performance over time given the current market conditions the industry is facing."

Elsewhere, shareholder Wilma Walker filed a complaint Tuesday in Delaware Chancery Court, wherein she asserted that AIG violated her rights as an investor when it accepted an $85-billion bailout from the U.S. government. Shareholders were not permitted to vote on the deal, which provided a nearly 80% stake to the government. The complaint asserts, "Absent judicial intervention, the transaction approved by AIG's Board will be crammed down on the company's stockholders in violation of basic principles of corporate law."

In early trading, AIG is down more than 11% to trade at $1.83. The stock's year-to-date loss now totals 96.5%.