MBIA Inc. (MBI) won dismissal of a lawsuit by Bank of America Corp. and Societe Generale SA (GLE) that sought to overturn New York state’s approval of the bond insurer’s 2009 restructuring of assets.
MBIA rose 24.5 percent to $12.84 at 1:12 p.m. in New York, after the ruling today by New York State Supreme Court Justice Barbara Kapnick in Manhattan. The banks had sought to reverse approval under laws allowing challenges of New York state agency decisions.
Kapnick’s decision came after a nonjury trial in Manhattan last year. The banks claimed that the approval by former New York Insurance Department Superintendent Eric Dinallo was based on inaccurate and incomplete information provided by Armonk, New York-based MBIA and should be annulled under state laws.
Bank of America and Societe Generale have another lawsuit pending against MBIA over the restructuring in New York state court, using different legal grounds.
Kapnick said today’s decision doesn’t extinguish claims in that case.
The case is ABN Amro Bank v. Dinallo, 601846-2009, New York State Supreme Court (Manhattan).