Assured and UBS Agree to Settle RMBS Litigation for $358 Million

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On May 6, monoline insurer Assured Guaranty Ltd. announced a $358 million settlement with UBS and its affiliates stemming from losses on residential mortgage-backed securities that were issued, sponsored or underwriten by UBS. Assured sued UBS in 2012 in federal court in New York alleging material misrepresentations and omissions concerning the quality of loans underlying the securitizations at issue that it insured. The settlement terminates all pending RMBS litigation between UBS and Assured. Under the terms of the settlement, the parties will also enter into a collateralized loss-sharing reinsurance agreement whereby UBS will compensate Assured for 85 percent of Assured’s future losses on the securitizations at issue in the litigation. Press Release. SEC Filing.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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