AGM, Flagstar $1B Coverage Fight Still Heading To Trial

Law360, New York (September 26, 2012, 3:39 PM EDT) -- A New York federal judge on Tuesday reaffirmed an order sending to trial Assured Guaranty Municipal Corp.'s contract dispute with Flagstar Bank FSB over insurance coverage for nearly $1 billion of the bank's mortgage-backed securities, rejecting Flagstar's renewed efforts to get the suit tossed.

In a memorandum reaffirming his February denial of Flagstar’s motion for summary judgment, U.S. District Judge Jed S. Rakoff said there was enough evidence to proceed to trial on AGM’s allegations that Flagstar misrepresented the quality of loans it knew to be...
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