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On June 26, 2015, the Commercial Division of the New York Supreme Court dismissed a complaint filed by CIFG Assurance North America (“CIFG”) against J.P. Morgan Securities LLC (“JPMS”). CIFG asserted claims under Section 3105 of the New York Insurance Law and for common law fraud, alleging that Bear Sterns, the predecessor of JPMS and underwriter for two CDOs with exposure to residential mortgage-backed securities, fraudulently induced CIFG to issue financial guaranty insurance on credit default swaps associated with the CDOs. Justice Marcy S. Friedman dismissed the complaint, holding that Bear Stearns, as underwriter of the CDO, was not an applicant for insurance under the meaning of Section 3105 and therefore not subject to its provisions. Justice Friedman also dismissed the common law fraud claim because CIFG had failed to plead it with sufficient particularity.

The Simpson Thacher team included Tom Rice, Bryce Friedman (who argued the motion), Josh Slocum and Will Pilon.