According to papers filed on September 6, 2008, the parties to the
consolidated MBIA securities action pending in the Southern District of New
York have agreed to settle the lawsuit for $68 million. The settlement is
subject to court approval. As noted below, the settlement has some
The parties' stipulation of settlement can be found here and the
plaintiffs' motion for preliminary approval of the settlement can be found here. Nate
Raymond's September 7, 2011 Am Law Litigation Daily article describing the
settlement can be found here.
As discussed here, in January
2008, MBIA joined a group of several other bond insurers there were sued in
securities class action relating to their alleged failures to disclosure the
exposures they had as a result of insurance guarantees they had extended ion
mortgage related securities. The lawsuit against MBIA followed the
company's disclosure of the extent of the guarantees the company had extended
on collateralized debt obligations. Among other things, the disclosure revealed
the extent to which the company had issued insurance on so-called CDOs-squared.
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Diary, a blog by Kevin LaCroix.
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