NY Court Nixes Martin Act Defense In $533M JPMorgan Suit

Law360, New York (December 20, 2011, 4:31 PM EST) -- New York's top court on Tuesday ruled the Martin Act does not block Assured Guaranty (UK) Ltd. from bringing common law claims against a JPMorgan Chase & Co. unit in a suit over $533 million in losses on mortgage-backed securities.

The New York Court of Appeals affirmed a November 2010 ruling by a lower state appeals court that allowed the Bermuda-based insurer to bring breach of fiduciary duty, breach of contract and gross negligence against J.P. Morgan Chase Investment Management Inc. Assured is seeking to recover...
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