MBIA, Aurelius Duke It Out Over Insolvency Claims

Law360, New York (January 4, 2012, 4:32 PM EST) -- MBIA Inc., the financial services company battling claims that it looted one of its insurance units in 2009 to avoid paying policyholder claims for toxic assets, last month accused class action plaintiff Aurelius Capital Partners LP of making defamatory statements in the press about the unit's solvency.

On Wednesday, Aurelius — a policyholder suing MBIA for fraud in connection with the restructuring — publicized a cease-and-desist letter from MBIA's attorney Marc E. Kasowitz of Kasowitz Benson Torres & Friedman LLP, over public statements made by Aurelius...
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