Louisiana and a number of other issuers around the state plan to sue downgraded bond insurers, according to the office of the state treasurer.

The lawsuits would follow those of issuers such as New Orleans, which alleged in a suit filed last month in federal court that "mismanagement" and "greed" at Ambac Assurance Corp. cost the city millions of dollars when remarketing of its variable-rate demand obligations backed by the insurer failed.

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