Ambac Execs Can't Shake ERISA Action

Law360, New York (January 6, 2011, 7:34 PM EST) -- A federal judge has refused to toss a putative class action alleging Ambac Financial Group Inc. officials broke the law by continuing to offer Ambac stock under an employee retirement plan even as the company spiraled toward bankruptcy.

Judge Harold Baer of the U.S. District Court for the Southern District of New York concluded Thursday that the members of Ambac’s plan investment committee, compensation committee and the plan administrative committee could not use the provisions of the savings plan to absolve themselves of Employee Retirement Income...
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