LOS ANGELES--(BUSINESS WIRE)--On Thursday, December 18, 2014, the law firms of Hirschmann & Tseng LLP and Paul Hastings LLP secured the dismissal of ACA Financial Guaranty Corporation on summary judgment in Retirement Housing Foundation et al. v. ACA Financial Guaranty Corporation et al, case no. BC404726, before Judge Elihu M. Berle in the Los Angeles Superior Court.
ACA, a monoline financial guaranty company operating in run-off since its restructuring in August 2008, was sued by Retirement Housing Foundation and several of its affiliates in December 2008. Retirement Housing Foundation had purchased bond and swap insurance from ACA as part of its issuance of $130 million of Select Auction Rate Variable Securities and alleged, among other things, that ACA misrepresented the conservatism of its business practices and its intention to maintain its ‘A’ credit rating. ACA was downgraded to ‘CCC’ by Standard & Poor’s in December 2007 during the global financial crisis and Retirement Housing Foundation alleged that they were forced to refinance their securities as a result of ACA’s downgrade. In granting ACA’s motion for summary judgment, Judge Berle held that Retirement Housing failed to demonstrate that ACA made any untrue or actionable misrepresentations to it.
“We are, of course, pleased by Judge Berle’s ruling,” said Shane W. Tseng of Hirschmann & Tseng LLP, who argued the summary judgment motion on ACA’s behalf.
ACA’s trial counsel Ralph F. Hirschmann said, “From the beginning of the case, we believed that ACA would be vindicated.”
ACA was also represented in this lawsuit by Belinda M. Vega of Hirschmann & Tseng LLP and Douglas H. Flaum and Shahzeb Lari of Paul Hastings LLP.