for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Westlaw News

Putnam wins dismissal of FGIC lawsuit over imploded $1.5 bln CDO

A federal judge has dismissed a lawsuit in which Financial Guaranty Insurance Co accused a Putnam Investments unit of fraudulently inducing it to insure a risky collateralized debt obligation while concealing a hedge fund’s plan to bet against it.

In a 221-page decision on Thursday, U.S. District Judge Lewis Liman in Manhattan said the bond insurer “simply failed to make out its case” that Putnam Advisory Co should be liable to cover its losses on the $1.5 billion Pyxis ABS CDO 2006-1, where it served as the collateral manager.

To read the full story on Westlaw Today, click here: bit.ly/31xNGOs

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up