Assured Guaranty to Receive $105 Million Cash Payment and Full Reimbursement of Future RMBS Claims in Settlement with Flagstar Bank
HAMILTON, Bermuda--(BUSINESS WIRE)--Assured Guaranty Ltd. (NYSE:AGO) (AGL and, together with its subsidiaries, Assured Guaranty or the Company) announced today that Assured Guaranty and Flagstar Bank have entered into a Settlement Agreement concerning Assured Guaranty’s litigation against Flagstar Bank for breaches of representations and warranties (R&W) in insured residential mortgage-backed securities (RMBS). The agreement follows the February 5, 2013 decision by Judge Rakoff of the United States District Court for the Southern District of New York in favor of Assured Guaranty.
As part of the settlement, Assured Guaranty will receive a cash payment of $105 million. Flagstar will also reimburse Assured Guaranty in full for all future claims on the Assured Guaranty insurance policies. Additionally, Flagstar will not appeal Judge Rakoff’s decision.
The comprehensive settlement resolves all RMBS claims that the Company has asserted against Flagstar and releases both parties from any and all other future RMBS-related claims between the parties.
Assured Guaranty Ltd. is a publicly traded Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. More information on Assured Guaranty and its subsidiaries can be found at assuredguaranty.com.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. For example, Assured Guaranty's ability to realize insurance loss recoveries or damages from originators, sellers, sponsors, underwriters or servicers of RMBS transactions could be affected by the ability or willingness of these parties to make such payments and other risk factors identified in Assured Guaranty's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as of June 21, 2013, and Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.