Insurer's $553M Investment Suit V. JP Morgan Tossed

Law360, New York (February 3, 2010, 3:58 PM EST) -- A New York state judge has dismissed Assured Guaranty (UK) Ltd.'s suit accusing J.P. Morgan Investment Management Inc. of breaching its contractual and fiduciary duties to a client covered by the Bermuda-based insurer by investing much of its $553 million in risky, mortgage-backed securities.

Judge Barbara R. Kapnick of the New York State Supreme Court ruled Friday that Assured's claims for breach of fiduciary duty and gross negligence are preempted by the state's Martin Act, which provides only the attorney general with the power to "prevent...
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