Bond Insurer MBIA Settles Hedge Fund's Fraud Suit

Law360, New York (April 12, 2012, 5:32 PM EDT) -- A hedge fund has settled a class action that accused bond insurer MBIA Inc. of fraud against its policyholders for moving more than $5 billion out of its insurance unit before a 2009 restructuring, the fund's attorney said Thursday.

Aurelius Capital Management Ltd. and MBIA said in a court document that Aurelius was voluntarily dismissing its case, which had tangled the bond insurer in litigation for over three years.

"We did settle the case and the case is now dismissed," Aurelius lawyer David Ichel of of...
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