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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />May 22, 2017 <br /> <br />SUBJECT <br />Approval of Partial Settlement in In re Ambac Bond Insurance Cases <br /> <br />RECOMMENDATION <br />By motion, approve a settlement with Ambac Assurance Corporation in In re Ambac <br />Bond Insurance Cases and authorize acceptance of payment of a settlement amount <br />estimated $83,947.97 <br /> <br /> <br />BACKGROUND <br /> <br />This case involves claims by several plaintiffs against insurance rating agencies and <br />bond insurers. As one of the plaintiffs in the case, the City of Redwood City has an <br />existing claim against Ambac Assurance Corporation (Ambac) and MBIA alleging that <br />the defendants violated state anti-trust laws. <br /> <br />ANALYSIS <br /> <br />Ambac has offered to settle the outstanding claims against it. The City’s estimated <br />share of the settlement amount is $83,947.97. The Office of the City Attorney <br />recommends approval of the tentative settlement. <br /> <br />ALTERNATIVES <br /> <br />Council could elect not to approve the settlement and continue to litigate the City’s case <br />against Ambac. <br /> <br />FISCAL IMPACT <br /> <br />As noted above, the City’s estimated share of the total settlement amount is <br />$83,947.97. This amount is contingent upon reconciliation of additional costs incurred at <br />the time of distribution. <br /> <br /> <br />6.1.G. - Page 1