Ambac Looks To Clear $33M Deal By Nixing Investor Claims

Law360, Los Angeles (September 6, 2011, 6:03 PM EDT) -- Ambac Financial Group Inc. on Tuesday asked a New York bankruptcy judge to bar shareholder claims to clear the path for a $33 million class action settlement with creditors accusing the bond insurer of lying about the perils of backing risky structured finance products.

“[T]he plaintiffs in the derivative actions, out-of-money parties, are trying to hold this heavily negotiated settlement hostage to extract value at the expense of the debtor’s creditors,” Ambac wrote in a brief to U.S. Bankruptcy Judge Shelley C. Chapman. “The derivative plaintiffs...
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