NEW YORK – MBIA Inc <MBI.N> and two top executives agreed to pay $68 million in cash to settle lawsuits accusing the bond insurer of misleading investors about its exposure to risky residential mortgage debt.
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Tuesday's settlement also covers former Chief Executive Gary Dunton and current Chief Financial Officer C. Edward Chaplin, according to papers filed with the U.S. District Court in Manhattan. Court approval is required.
Smaller rival Ambac Financial Group Inc <ABKFQ.PK>, its insurers and some banks earlier this year agreed to pay $33 million to settle similar investor claims. Ambac is now operating under Chapter 11 bankruptcy protection.
(Reporting by Jonathan Stempel, editing by Bernard Orr)