Bankruptcy Judge Stays Ambac Employees' ERISA Suit

Law360, New York (March 8, 2011, 7:07 PM EST) -- A New York bankruptcy judge on Monday stayed a suit brought by employee retirement plan participants who allege Ambac Financial Group Inc. officials broke the law by continuing to offer company stock in the plan even as it spiraled toward bankruptcy.

Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York ruled that the complaint, brought under the Employee Retirement Income Security Act, was largely subject to the automatic stay that went into place after Ambac filed for bankruptcy protection...
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