Jefferson County Judge Halts $378M JPMorgan Coverage Suit

Law360, New York (April 16, 2013, 4:24 PM EDT) -- Assured Guaranty Municipal Corp. can't proceed with claims that JPMorgan Chase Bank NA tricked it into providing $378 million in insurance coverage for municipal debt issued by now-bankrupt Jefferson County, Ala., by concealing bribes the bank had paid to county officials, a bankruptcy judge ruled Monday.

U.S. Bankruptcy Judge Thomas B. Bennett said the automatic stay in the Jefferson County bankruptcy applied to Assured’s suit even though the county is not named as a defendant. Judge Bennett said the case’s allegations were similar to those brought...
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