Investor Targets MBIA Over $5B Restructuring Transfer

Law360, New York (September 11, 2012, 11:02 PM EDT) -- Mortgage-backed securities investor CQS ABS Master Fund Ltd. hit MBIA Inc. with a lawsuit Monday challenging its transfer of $5 billion from its struggling insurance unit as part of a 2009 restructuring, saying MBIA Insurance Corp. policyholders were hung out to dry.

CQS' allegations, filed in New York federal court, are similar to those brought by hedge fund Aurelius Capital Management Ltd., which settled with the bond insurer in April. CQS accuses MBIA of ditching its insurance arm in an attempt to protect itself against the...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

CQS ABS Master Fund Ltd. et al v. MBIA Inc. et al


Case Number

1:12-cv-06840

Court

New York Southern

Nature of Suit

Fraud or Truth-In-Lending

Judge

Richard J. Sullivan

Date Filed

September 10, 2012

Law Firms

Companies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.