Ambac Investors Ask Judge To Toss $33M Settlement

Law360, New York (September 8, 2011, 8:25 PM EDT) -- Shareholders told a New York bankruptcy judge Thursday that Ambac Financial Group Inc.'s plans to pay creditors $33 million to settle class action allegations the bond insurer didn't disclose the risks in backing troubled securities left potential recovery on the table.

“We're trying to get money back into the estate,” Denis F. Sheils of Kohn Swift & Graf PC, an attorney for the shareholders, told U.S. Bankruptcy Judge Shelley C. Chapman.

The proposed class action settlement — with $24.6 million coming from Ambac's liability insurers, $5.9...
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.