A New York appeals court recently dismissed one of two lawsuits filed against MBIA Inc. (“MBIA”) by more than a dozen major financial institutions concerning the bond insurer’s financial restructuring. The plaintiffs – owners of insurance policies issued by MBIA for structured finance products, including residential mortgage-backed securities – claimed that the bond insurer’s split into two units was intended to defraud policyholders.
USA, New York, Insolvency & Restructuring, Insurance, Litigation, Locke Lord LLP, Bond (finance), Security (finance), Breach of contract, Fraud, Standard of review, Mortgage-backed security, Municipal bond, New York State Insurance Department