Plaintiff lawyers in the US are up in arms over the claim last week by AIG Chairman Maurice “Hank” Greenberg that plaintiff lawyers opposing tort reforms are “terrorists”. He also labelled class action lawsuits a “blight” on the US landscape.

His comments came just a day after the US Education Secretary, Rod Paige, called the country’s biggest teachers’ union a terrorist organisation. Mr Paige later apologised to the union, but Mr Greenberg shows no sign of backing away from the lawyers.

He told a business conference in Boston that the battle over tort reform is similar to the “war on terror”.

“I call the plaintiffs bar terrorists,” he said. “Our legal tort system is out of control.”

Mr Greenberg says class action lawsuits in the US reduce the GDP of the US by 2% a year, but the Association of Trial Lawyers of America responded with a claim that it is “on the side of the angels” because its members have helped 1100 individuals and families file their claims with the September 11 Victim Compensation Fund at no charge.

Mr Greenberg accused plaintiff lawyers of “venue shopping” for sympathetic judges and juries in liberal jurisdictions. “You know you’re going to get raped... when you appear there,” he said.