MBIA Fails To Dismiss Mortgage-Backed Securities Suit

Law360, New York (April 1, 2010, 7:13 PM EDT) -- A federal judge has dismissed two executives but otherwise kept alive a putative shareholder class action that accuses bond insurer MBIA Inc. of hiding the company's exposure to about $8.1 billion in losses stemming from its coverage of residential mortgage-backed securities.

Judge Kenneth M. Karas of the U.S. District Court for the Southern District of New York ruled Wednesday that the plaintiffs had adequately pled the existence of material misstatements or omissions made in charts, conference calls and presentations, and that the alleged particularized facts supported...
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