Fraud Proof Bar Lowered For Insurers In BofA Suits

Law360, New York (January 3, 2012, 7:42 PM EST) -- A New York state judge ruled Tuesday that monoline insurers suing Bank of America Corp.'s Countrywide Financial Corp. over billions of dollars in losses don't need to prove that Countrywide's alleged misrepresentations about the quality of securitized mortgages led directly to those loans' default.

Monoline insurers MBIA Inc. and Syncora Guarantee Inc. must show only that Countrywide misled them about the quality of mortgage loans underlying billions of dollars of securities that they insured — not that those misrepresentations led directly to their losses when the...
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