Ambac Sues U.S. Over Seizure of Tax Refunds

The bond insurer Ambac Financial Group (ABK) has sued the United States to block the seizure of $700 million of tax refunds, which it said could destroy its ability to reorganize in bankruptcy court. Ambac, which sought Chapter 11 protection on Monday, said IRS agents were examining whether the refunds were proper and may seek to recoup the refunds taken from 2003 to 2008. – Reuters