Insurer Standing Re. Fraud Claims Remains Uncertain

Law360, New York (October 24, 2007, 12:00 AM EDT) -- On September 18, the U.S. Court of Appeals for the 11th Circuit, in a case closely watched by bond insurers, other credit enhancers and issuers, conduit borrowers, and underwriters of insured or credit-enhanced debt, ruled that a bond insurer lacks standing to bring securities fraud claims in connection with the information on which it bases its decision to insure a municipal bond issue.

The appellate court’s opinion, which vacated the same judicial panel’s May 31, 2006 opinion in the same case that the bond insurer did...
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