ARMONK, N.Y.--(BUSINESS WIRE)--
MBIA Inc. (NYSE: MBI) today announced that the Appellate Division of the
New York State Supreme Court has reversed an earlier decision by a lower
court and granted MBIA’s motion to dismiss the plenary lawsuit brought
by a group of banks challenging the Company’s Transformation. In its
decision, the Appellate Division agreed with MBIA’s position that the
lawsuit was an improper collateral attack on the New York State
Insurance Department’s approval of MBIA’s Transformation. The Court also
dismissed all of the other causes of action stated in the banks’
complaint.
“The banks have continuously sought to obstruct National’s goal of
providing much needed insurance capacity to the municipal market and to
undermine the determinations made by the New York State Insurance
Department. So we are gratified by the Appellate Division’s decision and
are now looking forward to a prompt resolution of the Article 78
proceeding, in which we fully expect to prevail,” said Jay Brown, MBIA
CEO.
Forward-Looking Statements
This release includes statements that are not historical or current
facts and are “forward-looking statements” made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,”
“intend,” “will likely result,” “looking forward” or “will continue,”
and similar expressions identify forward-looking statements. These
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from historical earnings and
those presently anticipated or projected, including, among other risks,
the possibility that the Company will not realize insurance loss
recoveries expected in disputes with sellers/servicers of RMBS
transactions, the possibility that the Company will experience severe
losses or liquidity needs due to increased deterioration in its
insurance portfolios; the possibility that loss reserve estimates are
not adequate to cover potential claims; the Company’s ability to fully
implement its Strategic Plan as outlined in the Company’s most recent
Annual Report on Form 10-K; the Company’s ability to favorably resolve
regulatory proceedings and litigation claims against the Company and
legal actions initiated by the Company in connection with potential
insurance loss recoveries; an inability to achieve high, stable credit
ratings; and changes in general economic and competitive conditions.
These and other factors that could affect financial performance or could
cause actual results to differ materially from estimates contained in or
underlying the Company’s forward-looking statements are discussed under
the “Risk Factors” section in MBIA Inc.’s most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q, which may be updated or
amended in the Company’s subsequent filings with the Securities and
Exchange Commission. The Company cautions readers not to place undue
reliance on any such forward-looking statements, which speak only to
their respective dates. The Company undertakes no obligation to publicly
correct or update any forward-looking statement if it later becomes
aware that such result is not likely to be achieved.
MBIA Inc., headquartered in Armonk, New York is a holding company whose
subsidiaries provide financial guarantee insurance, fixed-income asset
management, and other specialized financial services. The Company
services its clients around the globe, with offices in New York, Denver,
San Francisco, Paris, London, Madrid and Mexico City. Please visit
MBIA's Web site at www.mbia.com.
Source: MBIA Inc.