MBIA Settles Investor Action Over RMBS Losses For $68M

Law360, New York (September 6, 2011, 7:09 PM EDT) -- Bond insurer MBIA Inc. settled a putative shareholder class action in New York on Tuesday, agreeing to pay $68 million to resolve allegations that it hid its exposure to billions in losses tied to residential mortgage-backed securities.

Shareholders said in a motion for preliminary approval of the proposed settlement and class certification that the payment “must be considered in the context of the serious risks that further protracted and contested litigation might lead to no recovery, or to a smaller recovery, from the defendants in this...
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