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MBIA Faces Class Action Over $8.1B Loss Exposure

Law360 (January 14, 2008, 12:00 AM EST) -- Bond insurance giant MBIA Inc. has been hit with a shareholder class action alleging top executives hid the company's exposure to massive losses stemming from its coverage of residential mortgage-backed securities.

Lawyers for the putative investor class, plaintiffs' firm Bernstein Litowitz Berger & Grossmann LLP, filed the suit Friday in the U.S. District Court for the Southern District of New York on behalf of all purchasers of MBIA common stock in the past year.

The firm said losses from the high-risk securities had hit other financial...
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