Law360, New York (June 28, 2011, 2:23 PM ET) -- New York’s highest court on Tuesday revived a suit by Bank of America Corp., UBS AG and several other major banks alleging MBIA Inc. fraudulently pulled $5 billion from its insurance unit during its 2009 restructuring.
The Court of Appeals of the State of New York ruled 5-2 that the New York insurance regulator’s approval of the restructuring didn’t bar the banks, all MBIA policyholders, from bring claims against the insurer.
The banks alleged the restructuring was fraudulent because it stripped $5.4 billion in cash and...
BofA, Others Can Fight MBIA Restructuring: NY High Court
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