On Monday, January 25, 2016, monoline insurer Ambac Assurance Corporation ("Ambac") reached a $995 million settlement with J.P. Morgan, resolving two RMBS actions pending before Justice Ramos in the Supreme Court of the State of New York and Ambac's objections to J.P. Morgan's $4.5 billion global settlement with RMBS trustees. We previously covered Ambac's actions against J.P. Morgan here, here and here. In those actions, Ambac brought claims against J.P. Morgan as the successor to EMC Mortgage and Bear Stearns for alleged misrepresentation of the quality the loans underlying eleven RMBS transactions. The settlement also resolves Ambac's objections to J.P. Morgan's 2014 settlement with RMBS trustees of claims for alleged breaches of representations and warranties and servicing deficiencies. The adequacy of that settlement is currently the subject of an Article 77 proceeding before Justice Friedman of the Supreme Court of the State of New York, which we previously covered here. Press Release. Stipulation of Withdrawal.
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