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Federal Judge Dismisses IRS Lawsuit Against Ambac, Wisconsin
By Joseph Checkler
A federal judge dismissed the Internal Revenue Service’s lawsuit against Wisconsin’s Commissioner of Insurance and Ambac Assurance Corp., saying her court lacks jurisdiction in the case and calling the IRS’s legal strategy a “collateral attack” against a state court.
In a ruling Friday, Judge Barbara B. Crabb of the U.S. District Court in Madison, Wis., said she hasn’t changed her mind since January when she ruled a federal court lacks jurisdiction to consider the legality of a Wisconsin state court’s decision to approve a rehabilitation plan for Ambac.
Parent Ambac Financial Group Inc. (ABKFQ) has said it might owe $700 million in tax refunds from 2003 to 2008, a possibility that the bond insurer said was a key factor when it decided to file for Chapter 11 bankruptcy protection in New York in November.
Continue reading the article . . .
Related reading:
Big Day at The WSJ & Other ‘Tin Hats’
Zero Hedge (18 Feb 11)
Motion For Preliminary Injunction
(17 Feb 11)
