Nov. 7 (Bloomberg) -- An investor's lawsuit against American International Group Inc., the insurer taken over by the U.S. government, won fast-track status from a Delaware judge who will decide whether shareholders should vote on the bailout.

In an order signed yesterday, Delaware Chancery Court Judge William B. Chandler III in Georgetown agreed to expedite the case and hold a hearing ``at the court's convenience'' to ``aid judicial efficiency.''

Shareholder Wilma Walker sued New York-based AIG Nov. 4 contending directors must allow existing stockholders to vote on a bailout provision that gives the government a 79.9 percent stake in exchange for $85 billion in loans.

``Effectuation of that equity issuance requires a class vote of holders of the company's common stock'' under Delaware law, Walker's lawyers said in court papers filed yesterday.

AIG got the $85 billion in loans Sept. 16 to stave off bankruptcy, company officials said. As part of the bailout package, senior AIG managers including Chief Executive Officer Robert Willumstad agreed to step down.

AIG spokesman Joe Norton declined to comment on yesterday's order.

AIG rose 24 cents, or 13 percent, to $2.11 in New York Stock Exchange composite trading at 4:15 p.m. The stock has declined 96 percent this year.

The case is Wilma Walker v. American International Group Inc., CA4142 Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net.

Last Updated: November 7, 2008 17:27 EST