Justice Shirley Kornreich of the Supreme Court of the State of New York dismissed MBIA Insurance Corporation's claim that it was fraudulently induced to insure a Credit Suisse RMBS issuance. The Court dismissed the fraudulent inducement claim because MBIA, a sophisticated party, had access to and failed to investigate all relevant information, had failed to obtain certain contractual warranties, because certain of the alleged misrepresentations were not material or amounted to non-actionable opinions of value or future expectations, and because the fraud claim was largely duplicative of MBIA's contract claim. The Court also dismissed several other aspects of MBIA's claims, including the prayers for punitive and consequential damages. MBIA may proceed, however, with certain other claims, including its claims for breach of contract and indemnification. Decision.
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Dismissal of MBIA's fraud claim against Credit Suisse
- Orrick Herrington & Sutcliffe LLP
- June 6 2011
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