Ambac Says DOJ Tax Suit Violates Injunction

Law360, New York (February 16, 2011, 2:13 PM EST) -- Ambac Financial Group Inc. has asked the federal judge overseeing its bankruptcy proceedings to enforce a judge's order blocking the Internal Revenue Service from suing to collect a possible $700 million in tax liabilities from the insurer.

There is no question that a Nov. 8 injunction issued by Judge William D. Johnston of the Wisconsin Circuit Court for Dane County prohibits the IRS from initiating any action against Ambac, the holding company said in a motion filed on Tuesday in the U.S. Bankruptcy Court for the...
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