Ambac Dismissed From New Orleans Bond Suit

Law360, New York (October 15, 2010, 5:15 PM EDT) -- A federal judge has tossed the city of New Orleans' claims against Ambac Assurance Corp. in a suit alleging the insurer's failure to maintain a high financial rating cost the city interest on a $171 million bond issue to fund firefighter pensions.

Judge Kurt D. Engelhardt of the U.S. District Court for the Eastern District of Louisiana also dismissed the city's claims against Ambac Financial Services LLC, according to a minute entry Thursday.

The city had alleged Ambac promised to provide “credit enhancement services” in the...
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