According to a Bloomberg report, Assured claims that DLJ ‘repeatedly and pervasively’ provided incorrect representations about the loans, which resulted in 7,338 defective loans packaged into securities that Assured guaranteed to investors. Assured adds that DLJ's actions exposed it to ‘hundreds of millions of dollars’ in current and future claim payments. Credit Suisse Securities (USA) LLC was also named as a defendant in the lawsuit, which was filed in New York State Supreme Court.
A Credit Suisse spokesperson, in an e-mail statement to Bloomberg, said that the lawsuit was without merit.
‘Assured is a sophisticated multibillion-dollar insurance company that received full disclosure about the securities they chose to insure,’ he wrote. ‘Now that investors have suffered losses, Assured has chosen to file a lawsuit to evade its insurance obligations.’