Ambac Says DOJ Tax Suit Violates Injunction

Law360, New York (February 16, 2011, 2:13 PM EST) -- Ambac Financial Group Inc. has asked the federal judge overseeing its bankruptcy proceedings to enforce a judge's order blocking the Internal Revenue Service from suing to collect a possible $700 million in tax liabilities from the insurer.

There is no question that a Nov. 8 injunction issued by Judge William D. Johnston of the Wisconsin Circuit Court for Dane County prohibits the IRS from initiating any action against Ambac, the holding company said in a motion filed on Tuesday in the U.S. Bankruptcy Court for the...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.