Citibank Exits MBIA Insurance Fraud Suit

Law360, New York (February 28, 2011, 11:51 PM EST) -- Citibank NA on Monday dropped out of a lawsuit in which some of the world's largest financial institutions accused MBIA Inc. of devising a fraudulent restructuring in order to avoid paying out insurance policies the company offered on financial products.

Citibank and MBIA signed a stipulation to voluntarily dismiss with prejudice two lawsuits pending in the Supreme Court of the State of New York, County of New York.

MBIA on Monday declined to comment on the agreement, while Citibank and its attorneys did not immediately respond...
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