Kasowitz Defends MBIA Against Suits to Unwind and Annul $5 Billion Transformation of Its Business
Kasowitz represents MBIA Inc. and its government bond and structured finance insurer subsidiaries, MBIA Insurance Corporation of Illinois (now known as National Public Finance Guarantee Corporation) and MBIA Insurance Corporation, in two actions brought by twenty of the world's largest financial institutions, including J.P. Morgan Chase, Citibank, Bank of America, Morgan Stanley, Merrill Lynch, Barclays, Wachovia, UBS, and HSBC, in the Commercial Division of New York State Supreme Court, New York County. In the actions, one a plenary action and the other a CPLR Article 78 special proceeding also naming as a respondent the New York State Superintendent of Insurance, plaintiffs seek to set aside, on alleged fraudulent conveyance grounds, MBIA's $5 billion transformation of its business in February 2009, and to overturn the specific prior approval of the transformation by the Superintendent. Kasowitz has moved, on behalf of MBIA, to dismiss the plenary action on the ground, among others, that an Article 78 proceeding is the only permissible way, under New York law, for plaintiffs to challenge a decision of the Superintendent. Kasowitz is also co-counsel to MBIA in two similar actions brought by other plaintiffs in the U.S. District Court for the Southern District of New York and Delaware Chancery Court also seeking to unwind the transformation. MBIA has moved to dismiss those actions as well. Kasowitz partners Marc Kasowitz, Daniel Benson, and Albert Shemmy Mishaan lead MBIA’s representation.