Judge Refuses To Overturn Ambac Tax Injunction

Law360, New York (February 18, 2011, 6:09 PM EST) -- A federal judge in Wisconsin has tossed the U.S. government's attempt to overturn a state court's order blocking the Internal Revenue Service from collecting $700 million in tax liabilities from bankrupt insurer Ambac Financial Group Inc.

Judge Barbara Crabb dismissed the case on Thursday in the U.S. District Court for the Western District of Wisconsin, saying for the second time in as many months that the court has no jurisdiction in the matter.

At issue is a Nov. 8 injunction issued by the Wisconsin Circuit Court...
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