Ambac gets subpoena from Massachusetts; two lawsuits filed against company

By Jennifer Chiou

New York, Jan. 25 - Ambac Financial Group, Inc. received on Jan. 18 a subpoena from the securities division of the Commonwealth of Massachusetts linked to the Massachusetts public issue bonds, according to an 8-K filing with the Securities and Exchange Commission.

The securities division is seeking more information regarding the bonds, which include debt securities of the Commonwealth of Massachusetts, any city, town or county of Massachusetts and any political subdivision.

The New York-based bond guarantor said it intends to cooperate with the securities division.

The company also said that a class action lawsuit purportedly brought on behalf of purchasers of its common stock from Oct. 19, 2005 to Nov. 26 had been filed in the U.S. District Court for the Southern District of New York on Jan. 16. In addition, a second lawsuit, a shareholder derivative action, was filed on Wednesday.

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