Ambac Seeks To Block Board Member Accused Of Cronyism

Law360, New York (March 5, 2013, 4:54 PM EST) -- Bond insurer Ambac Financial Group Inc. on Monday asked a New York bankruptcy judge to bar investment strategist Charles Lemonides from joining the company’s board of directors, alleging he pushed for an unqualified friend to become the company’s chief investment officer.

Under Ambac’s reorganization plan, approved in March 2012, a new board of directors was proposed that included Lemonides. Ambac alleges Lemonides began a campaign to install an unnamed friend as CIO when the company exits Chapter 11.

According to Ambac’s motion, board member Diana Adams...
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