Judge Trims $5.7B MBIA Swaps Case Against Merrill

Law360, New York (April 9, 2010, 6:36 PM EDT) -- A New York state judge has tossed most of MBIA Inc.’s claims against Merrill Lynch & Co. over losses the bond insurer incurred in connection with some $5.7 billion in credit default swap contracts.

Justice Bernard Fried of the New York County Supreme Court on Friday dismissed five of the six claims, including fraud and breach of covenant, but held that MBIA could proceed with its breach of contract claim and still seek damages.

MBIA and LaCrosse Financial Products LLC, a special purpose vehicle, brought the...
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