Shareholders of the Woodland Hills insurer 21st Insurance Group are suing in a bid to block a buyout by American International Group Inc. American, which owns 62 percent of the company, last week said it wanted to buy the rest of 21st for $690 million. Minority investors of 21st contend AIG’s move was timed to squeeze out minority shareholders without paying a fair price for the company. The investors are asking the Los Angeles Superior Court to stop the buyout until 21st establishes a system that ensures the highest price. They also want 21st to hire more impartial advisors to protect their interests, according to the suite filed Tuesday.
