MBIA Investors Drop Fraud Suit Over Gutted Insurance Unit

Law360, Los Angeles (June 10, 2013, 6:01 PM EDT) -- A group of investors that accused financial services company MBIA Inc. of wrongfully stripping billions from the company's insurance unit for top executives’ benefit has voluntarily dismissed all claims, according to a joint motion for dismissal filed Friday in New York state court.

The investors hit MBIA and two subsidiaries with the fraud and contract suit in New York Supreme Court in November, claiming MBIA devised a complex scheme to defraud MBIA Insurance’s investors and creditors in the wake of the financial crisis. The parties on...
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