Ambac Drops $6B Claim Against Lehman Brothers

Law360, New York (October 6, 2010, 3:09 PM EDT) -- Ambac Financial Group Inc. has agreed to drop $6.1 billion in claims linked largely to residential mortgage-backed securities against Lehman Brothers Holdings Inc.

According to a settlement agreement filed Tuesday in the U.S. Bankruptcy Court for the Southern District of New York, Ambac agreed to drop its claims in exchange for dismissing litigation around the country pitting the two companies against each other.

“The global settlement is fair, equitable and in the best interests of the debtors' estates, their creditors and all parties in interest in...
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