Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

14.    COMMITMENTS AND CONTINGENCIES

The following commitments and contingencies provide an update of those discussed in Note 20: Commitments and Contingencies in the Notes to Consolidated Financial Statements included Part II, Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and in Note 14: Commitments and Contingencies in the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023, and should be read in conjunction with the complete descriptions provided in the aforementioned Form 10-K and Form 10-Q.

Litigation Filed or Joined by Ambac

Puerto Rico

In re Financial Oversight and Management Board for Puerto Rico (United States District Court, District of Puerto Rico, No. 1:17- bk-03283) (appeals of the Commonwealth Plan). On January 18, 2022, the District Court entered an order confirming the Commonwealth Plan and entered its findings of fact and conclusions of law related thereto. Several parties filed notices of appeal of the District Court’s confirmation order to the First Circuit Court of Appeals, including a number of teachers’ unions

(“the Teachers’ Unions”), the Oversight Board, certain individual creditors, a number of credit unions (“the Credit Unions”), and Suiza Dairy Corporation (“Suiza”). The First Circuit previously denied the appeals of the Oversight Board, the Teachers’ Unions, the individual creditors, and the Credit Unions and affirmed the order approving the Commonwealth Plan in each. On August 22, 2023, the First Circuit denied the Suiza appeal and affirmed the order approving the Commonwealth Plan.

In re Financial Oversight and Management Board for Puerto Rico (United States District Court, District of Puerto Rico, No. 1:17- bk-03567) (appeal of the PRHTA POA). On October 12, 2022, the District Court entered an order confirming the PRHTA POA and entered its findings of fact and conclusions of law related thereto. On October 24, 2022, a group of present and former employees of PRHTA (“the Vazquez-Velazquez Group”) appealed the PRHTA POA confirmation order. On July 12, 2023, the First Circuit denied the appeal and affirmed the PRHTA POA confirmation order. On July 24, 2023, the Vazquez-Velazquez Group filed a petition for panel rehearing in the First Circuit, which petition the First Circuit denied on August 11, 2023.

RMBS Litigation

Ambac Assurance Corporation v. U.S. Bank National Association (United States District Court, Southern District of New York, Docket No. 17-cv-02614, filed April 11, 2017). On October 18, 2022, the Court set a schedule for additional summary judgment briefing, which was concluded on February 10, 2023.