Ambac Financial Group Inc (AMBC)

[Enterprising Investor]

Ambac Defeats Summary Judgment Motion and Obtains Trial Date in Fraud Case Against Countrywide and Bank of America (8/31/22)

NEW YORK--(BUSINESS WIRE)--Ambac Financial Group (NYSE: AMBC), a financial services holding company whose subsidiaries include Ambac Assurance Corporation (“Ambac”), announced that on August 29, 2022, the Supreme Court of the State of New York issued a decision denying Countrywide’s motion for summary judgment in the case entitled Ambac Assurance Corporation and the Segregated Account of Ambac Assurance Corporation v. Countrywide Home Loans, Inc., Countrywide Securities Corp., Countrywide Financial Corp., and Bank of America Corp. (Supreme Court of the State of New York, County of New York, Case No. 653979/2014, filed on December 30, 2014).

Ambac is pleased with the Court’s decision to allow its fraud case against Countrywide and Bank of America to go forward to trial in front of a jury. Trial is scheduled to commence in January 2024, although the Court indicated that it may reschedule the trial for an earlier time if its calendar permits. Through this case, Ambac seeks to prove that Countrywide made false and intentionally misleading representations to Ambac about, among other things, its mortgage origination practices and the purported quality of its mortgage loans. Ambac seeks to recover hundreds of millions of dollars in losses, as well as punitive damages.

In addition to this case, Ambac continues to pursue additional claims against Bank of America and related entities in the cases entitled Ambac Assurance Corporation and The Segregated Account of Ambac Assurance Corporation v. Countrywide Securities Corp., Countrywide Financial Corp. (a.k.a. Bank of America Home Loans) and Bank of America Corp. (Supreme Court of the State of New York, County of New York, Case No. 651612/2010, filed on September 28, 2010), in which trial will begin on September 7, 2022, and Ambac Assurance Corporation and The Segregated Account of Ambac Assurance Corporation v. First Franklin Financial Corporation, Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith Inc., Merrill Lynch Mortgage Lending, Inc., and Merrill Lynch Mortgage Investors, Inc. (Supreme Court of the State of New York, County of New York, Case No. 651217/2012, filed April 16, 2012).

The August 29, 2022, decision will not impact the estimated subrogation recoveries on Ambac’s balance sheet, which relate only to contract-based litigation claims and not to fraud claims.

About Ambac

Ambac Financial Group, Inc. (“Ambac” or “AFG”) is a financial services holding company headquartered in New York City. Ambac’s core business is a growing specialty P&C distribution and underwriting platform. Ambac also has a legacy financial guaranty business in run off. Ambac’s common stock trades on the New York Stock Exchange under the symbol “AMBC”. Ambac is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, we use our website to convey information about our businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information. For more information, please go to www.ambac.com.

The Amended and Restated Certificate of Incorporation of Ambac contains substantial restrictions on the ability to transfer Ambac’s common stock. Subject to limited exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), any person or group of persons shall become a holder of 5% or more of Ambac’s common stock or a holder of 5% or more of Ambac’s common stock increases its ownership interest.

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