Bond Insurer Wins Dismissal Of Subprime Exposure Action

Law360, New York (September 27, 2011, 10:55 PM EDT) -- A New York federal judge on Tuesday tossed a case brought by a class of Security Capital Assurance Ltd. shareholders claiming the bond insurer failed to accurately report its subprime exposure, finding the plaintiffs relied on information and statements irrelevant to their allegations.

The suit, a combination of three class actions, accused SCA of calculating its subprime exposure using an inaccurate Fair Isaac Corp. score and using its own internal models for assessing subprime exposure risks when issuing credit default swaps, which resulted in a drop...
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