Ambac Suit Over $1B JPMorgan Losses Revived In NY

Law360, New York (July 14, 2011, 6:10 PM EDT) -- A New York appeals court on Thursday revived allegations that a JPMorgan Chase & Co. affiliate lost $1 billion in complex reinsurance investments for an Ambac Financial Group Inc. subsidiary despite following the letter of an investment agreement.

A lower court had gone too far in dismissing Ambac's complaint, and only should have determined if Ambac's allegations were "cognizable," according to a unanimous opinion by a five-judge panel of the First Department, a Manhattan appeals court.

Ambac Assurance UK Ltd. accused J.P. Morgan Investment Management Inc....
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