Shares of MBIA Inc. (NYSE: MBI) are surging after a New York appeals court dismissed one of two lawsuits against the company related to its restructuring.

As of 12:10 p.m. (EDT), MBIA shares were up 13.19 percent – the stock’s highest level since September 2008.

The Appellate Division, First Department in Manhattan granted a motion to dismiss a complaint filed against MBIA which had challenged the split of the company in 2009.

The plaintiffs asserted that the restructuring was a fraudulent and rendered the MBIA Insurance unit undercapitalized and likely unable to pay out future claims.