Credit Suisse Settles Assured Guaranty’s Mortgage Lawsuit
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Credit Suisse Group AG settled a three-year-old lawsuit by Assured Guaranty Ltd. accusing the bank of misrepresenting the quality of loans in mortgage-backed securities it insured.
Assured Guaranty reached an agreement to resolve the dispute, according to a statement posted on its website yesterday that didn’t disclose the terms. The bond insurer sued Zurich-based Credit Suisse in New York State Supreme Court in October 2011, saying the bank’s misrepresentations exposed it to hundreds of millions of dollars in claim payments.