Assured Guaranty Sues GMAC Entities in Connection with RMBS Insurance

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On May 11, 2012, Assured Guaranty filed suit in the United States District Court for the Southern District of New York against several GMAC entities alleging that the defendants induced Assured to issue financial guaranty insurance for certain RMBS by making misrepresentations about the underlying mortgage loans. Assured’s allegations concern two securitizations, one issued in 2004 and one in 2008, with respect to which Assured has thus far paid out $55.7 million in claims. Assured alleges that the defendants violated their own underwriting standards and contractual loan-level repurchase obligations. Assured asserts causes of action for breach of contract, indemnification, and reimbursement, and seeks compensatory damages. Complaint.

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