Ambac, Underwriters To Settle Class Action For $33M

Law360, New York (May 6, 2011, 7:46 PM EDT) -- Ambac Financial Group Inc. and a slew of underwriters agreed Friday to pay $33 million to settle a putative shareholder class action in New York that accused the bankrupt bond insurer of lying about its practice of insuring risky financial products.

Under a deal Ambac and its directors and officers struck with the plaintiffs, the bond insurer will hand over $2.5 million that it previously placed in an escrow account, and Ambac's directors and officers policy insurers will shell out $24.6 million in cash. In a...
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