Ambac Wins OK For $33M Payout In Securities Actions

Law360, New York (July 19, 2011, 5:48 PM EDT) -- Ambac Financial Group Inc. on Tuesday won approval from a New York bankruptcy judge to settle for $33 million two securities class actions and derivative suits accusing the bond insurer of lying about the perils of backing risky structured finance products.

U.S. Bankruptcy Judge Shelley C. Chapman signed off on the deal after a brief hearing in Manhattan, allowing the debtor to free itself from the claims. A total of $33 million would go to the plaintiffs under the deal, with $24.6 million coming from Ambac's...
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