Superdome Sues FGIC Over 'Worthless' ARS Insurance

Law360, New York (January 27, 2009, 12:00 AM EST) -- The owner of the Superdome in New Orleans has sued Financial Guaranty Insurance Co., claiming a $13 million insurance policy it purchased to protect $238 million in auction rate securities issued to fund the renovation of the stadium essentially became worthless after FGIC's credit rating was downgraded last year.

The Louisiana Stadium and Exposition District, which owns the Superdome, filed suit against FGIC on Thursday in the U.S. District Court for the Eastern District of Louisiana, seeking to recoup tens of millions of dollars in damages...
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