Ambac Wants New Orleans' $171M Bond Suit Tossed

Law360, New York (February 3, 2010, 6:13 PM EST) -- Bond insurer Ambac Assurance Corp. has asked a court to throw out a case brought by the city of New Orleans, which alleges that the insurer’s failure to maintain a high financial rating cost the city unexpected interest on a $171 million bond issue intended to fund firefighter pensions.

Ambac and affiliate Ambac Financial Services LLC filed a motion to dismiss the case on Tuesday in the U.S. District Court for the Eastern District of Louisiana, contending that the insurer made no promise to the city...
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