MBIA shareholders may qualify for payments
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- October
- 7
Some shareholders of MBIA Inc. may be eligible for compensation as a result of the company’s settlement of a long-standing investigation by the Securities and Exchange Commission in January 2007.
The shareholders who bought MBIA stock from Sept. 11, 1998 through Nov. 22, 2004, may qualify for payments from a $60 million fund established as part of the settlement, according to a notice posted on MBIA’s Web site.
Depending on when shareholders bought and sold the stock, they could receive compensation of $1.11 per share or $1.80 per share.
The SEC investigation focused on MBIA’s relationship with Allegheny Health, Education and Research Foundation, a Pennsylvania hospital chain that defaulted in July 1998 on $256 million of bonds that MBIA had guaranteed. MBIA, an Armonk-based bond insurer, expected that the Allegheny default would lead to a potential loss of $95 million to $100 million, exceeding the company’s unallocated loss reserve of $75 million, regulators said.
“Rather than take a loss that would dwarf any previous loss it had suffered, MBIA entered into a fraudulent scheme to avoid booking the loss,” read a 2007 statement from regulators.
This entry was posted
on Tuesday, October 7th, 2008 at 1:34 pm by Jay Loomis.
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Category: Regulatory agencies
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