Ambac Assurance, Credit Suisse Agree to End Mortgage SuitChris Dolmetsch
Ambac Financial Group Inc. ended a lawsuit against Credit Suisse Group AG over claims it was misled in purchases of mortgage-backed securities, according to a court filing.
The two sides said in papers filed today in New York state court in Manhattan that they have agreed to discontinue the litigation. They offered no explanation for the decision.
Ambac’s bond insurance unit, Ambac Assurance Corp., sued two units of Zurich-based Credit Suisse in January 2010, alleging breach of warranties, breach of repurchase and other damages in addition to fraudulent inducement.
Ambac, based in New York, said in the suit that Credit Suisse misstated the attributes of securitized loans and the underwriting guidelines used to select them, and violated agreements by refusing to repurchase the securities.
John Ansbro, an attorney representing Credit Suisse, declined to comment on the filing. Peter Tomlinson, a lawyer for Ambac, didn’t immediately respond to a voice-mail message seeking comment on the filing.
The case is Ambac Assurance Corp. v. DLJ Mortgage Capital, Inc. 600070/2010, New York State Supreme Court (Manhattan).