$33M Ambac Securities Action Settlement Gets Final OK

Law360, New York (September 28, 2011, 7:54 PM EDT) -- A New York federal judge on Wednesday approved bankrupt Ambac Financial Group Inc.'s controversial $33 million settlement ending class action allegations that the bond insurer didn't disclose risks in backing troubled securities.

U.S. District Judge Naomi R. Buchwald signed off on the agreement, which settles a slew of securities actions and blocks the derivative claims of Ambac shareholders who allege the company's directors and officers breached their fiduciary duties and grossly mismanaged the company.

Under the terms of the settlement, the bond insurer will hand over...
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