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Mortgage Investor Lawsuits Fourth-Quarter 2009 Fourth-Quarter 2009 Mortgage Litigation Index

Mortgage Daily

Published On: March 8, 2010
Mortgage Investor Lawsuits
Fourth-Quarter 2009 Mortgage Litigation Index

Shareholder lawsuits and class actions accusing companies of inflating earnings, overstating capital position or otherwise deceiving investors in the company. Other shareholder issues.

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number Date Filed Link to Story
25 current and former officers of failed Western Corporate Federal Credit Union Seven credit unions Los Angeles Superior Court na National Credit Union Administration made filing to replace plaintiffs with itself. Defendants abandoned their fiduciary duty to invest conservatively in liquid assets and instead poured capital into risky, highly leveraged mortgage-backed securities. na na na www.mortgagedaily.com/LitigationGraveyard123009.aspwww.mortgagedaily.com/LawsuitNcua123109.asp
Advanta Corp. Investors that traded common shares of Advanta Corp. between Oct. 31, 2006, to Nov. 27, 2007 U.S. District Court for the Eastern District of Pennsylvania na Shareholder class action suit alleges Advanta misled investors about financial condition. In re Advanta Corp. Case No. 09cv04730 Oct. 10, 2009 www.mortgagedaily.com/InvestorLawsuits122909.asp
American Home Mortgage Investors who owned the stock between July 19, 2005, and Aug. 6, 2007 U.S. District Court for the Eastern District of New York na Settlements have been proposed in shareholder class action. In re American Home Mortgage Securities Litigation Case No. 07MD1898 (TCP) na www.mortgagedaily.com/InvestorLawsuits122909.asp
Bear Stearns Asset Management Inc. et al. Bank of America et al. U.S. District Court for the Southern District of New York $4,000,000,000 Defendant’s motion to dismiss denied. A federal district court judge has ruled that Bank of America Corp. can proceed with its $4 billion lawsuit based on contract and fraud claims against Bear Stearns Asset Management and two former Bear hedge fund managers. Bank of America et al. v. Bear Stearns Asset Management Inc. et al. Case No. 08-cv-09265 Oct. 2008 www.mortgagedaily.com/Lawsuits102709.aspwww.mortgagedaily.com/MbsLitigation122909.asp
Bear Stearns Mortgage Funding Trust 2006-AR1, Structured Asset Mortgage Investments II, Inc., Jeffrey L. Verschleiser, Michael B. Nierenberg, Jeffrey Mayer, Thomas F. Marano, Joseph T. Jurkowski, Bear Stearns & Co., Inc., JP Morgan Chase, Inc. New Jersey Carpenters Health Fund U.S. District Court for the Southern District of New York na Suit alleges fraudulent and misleading statements regarding the quality of securitized investments, including misleading statements regarding quality of underlying loans, such as loan-to-value ratio, debt-to-income levels, etc. New Jersey Carpenters Fund v. Bear Stearns Mortgage Funding Trust 2006-AR1 et al. Case No. 1:2008cv08093 Sept. 18, 2008 www.mortgagedaily.com/MbsLitigation122909.asp
Brad A. Morrice, Patti M. Dodge, David N. Kenneally Securities and Exchange Commission U.S. District Court for the Central District of California na SEC accuses former New Century Financial Corp. executives of defrauding investors by making false and misleading statements regarding risks New Century faced as the mortgage market imploded. Fraudulent accounting practices to hide losses are also alleged. Securities and Exchange Commission, Plaintiff, vs. Brad A. Morrice, Patti M. Dodge, and David N. Kenneally, Defendants Case No. SACV09-01426 Dec. 7, 2009 www.mortgagedaily.com/NewCenturyInvestorFraud120709.asp
Brookstreet Securities Corp, Stanley C. Brooks Securities and Exchange Commission U.S. District Court for the Central District of California $300,000,000 Criminal action against securities brokerage selling high risk collateralized mortgage obligations to risk averse investors, misrepresenting the risk associated with the assets. SEC v. Brookstreet Securities Corp. Case No. SACV09-01431 Dec. 8, 2009 www.mortgagedaily.com/MbsLitigation122909.asp
Educational Systems Federal Credit Union CU National Mortgage LLC na na Declaratory judgment action seeking the court’s confirmation was filed. www.mortgagedaily.com/LitigationGraveyard123009.asp
former U.S. Central president and CEO Francis Lee, two former officers, the board of directors and the accounting firm of RubinBrown LLP Corporate America Credit Union U.S. District Court in Alabama $9,000,000 Defendants allegedly withheld information about upcoming MBS write downs. na na October 20, 2009 www.mortgagedaily.com/MbsLitigation122909.asp
Former Washington Mutual Inc. executives including former CEO Kerry Killinger, former chief financial officer Thomas Casey and former home loans president David Schneider, former chief operating officer Stephen Rotella and former chief enterprise risk officer Ronald Cathc na U.S. District Court in Seattle na Court rules case, which seeks class action certification, can continue. na na na www.mortgagedaily.com/InvestorLawsuits122909.asp
James Benjamin Duncan, Hendrix Moreno Montecastro, Helen Moreno Pedrino, Maurice McLeod, Charlie Sung Muk Choi, Cindi Gayle Kelly and Thuan Nhan Du na Riverside County Superior Court, Calif. $125,000,000 Defendants tied to Pacific Wealth Management and Stonewood Investments accused of securities fraud. In re. Pacific Wealth Management and Stonewood Investments RIF153306 na www.mortgagedaily.com/InvestorLawsuits122909.asp
Legacy Group Lending Inc., a Washington profit corporation; Legacy Group Capital LLC, a Washington Limited Liability Company; Scott R. Rerucha, individually and the marital community composed of Scott and Mary Jo Rerucha; Does 1-20, inclusive Brett T. Green Superior Court of the State of Washington in and for the County of King na The complaint alleges that Scott Rerucha, the Legacy President, fired the plaintiff for no reason, failed to pay him salary and profits as required by his employment contract, and engaged in a systematic campaign to defame Green within the Kitsap County business community so that he could not compete with Legacy in the future. Brett T. Green, Plaintiff, vs. Legacy Group Lending Inc., a Washington profit corporation; Legacy Group Capital LLC, a Washington Limited Liability Company; Scott R. Rerucha, individually and the marital community composed of Scott and Mary Jo Rerucha; Does 1-20, inclusive na Oct. 7, 2009 www.mortgagedaily.com/LawsuitsEmployment102709.asp
Morgan Stanley & Co. Inc., Morgan Stanley & Co. International Ltd. Employees’ Retirement System of the Government of the Virgin Islands U.S. District Court for the Southern District of New York na Pension fund alleges bank colluded with ratings agencies to obtain triple-A ratings for CDO backed by highly risky assets. These were then sold to investors at the same time that the bank was “shorting” the very same assets, thus indicating its knowledge that the assets were not worth the value at which they were sold. Employees’ Retirement System of the Government of the Virgin Islands et al v. Morgan Stanley & Co. Incorporated et al. Case No. 1:2009cv10532 Dec. 24, 2009 www.mortgagedaily.com/LitigationGraveyard123009.asp
Perry, Michael Former IndyMac Bancorp Inc. trustee Alfried H. Seigel U.S. Bankruptcy Court in Los Angeles na Former IndyMac CEO accused of squandering assets and ignoring warning signals. na na na www.mortgagedaily.com/LitigationGraveyard123009.asp
Regions Financial Corp. Investors who purchased shares between Oct. 3, 2006, and Nov. 4, 2006, U.S. District Court for the Northern District of Alabama na Former officers and directors allegedly violated Federal securities laws by allowing or authorizing the solicitation of proxies or consent to a resolution approving a merger/acquisition between Regions and AmSouth. na na na www.mortgagedaily.com/InvestorLawsuits122909.asp
Standard & Poor’s Financial Services LLC, The McGraw-Hill Companies Inc., Moody’s Corp., Moody’s Investor Services Inc., Fitch Inc. Ohio Police & Fire Pension Fund, Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio, School Employees Retirement Systems of Ohio, Ohio Public Employees Deferred Compensation Program U.S. District Court for the Southern District Court of Ohio na Ohio AG sues rating agencies over improper ratings of structured finance assets, such as securitized loans, CDOs, etc. Ohio Police & Fire Pension Fund, et al v. Standard & Poor’s Financial Services LLC, et al. Case No. 2:09-cv-1054 Nov. 20, 2009 www.mortgagedaily.com/MbsLitigation122909.asp
Standard & Poor’s, Moody’s, Fitch Connecticut Attorney General Richard Blumenthal U.S. District Court for the Southern District Court of Ohio na Alleged improper ratings of structured finance assets, such as securitized loans, CDOs, etc. na na November 2009 www.mortgagedaily.com/MbsLitigation122909.asp
Structured Asset Mortgage Investments II, Inc., Bear Stearns Alt-A Trust 2006-6, Bear Stearns ARM Trust 2006-4, Bear Stearns Mortgage Funding Trust 2006-AR2, Structured Asset Mortgage Investments II Trust 2006-AR7, Structured Asset Mortgage Investments II Trust 2006-AR6, Bear Stearns Alt-A Trust 2006-5, Bear Stearns Mortgage Funding Trust 2006-AR5, Bear Stearns Alt-A Trust 2006-8, Bear Stearns Mortgage Funding Trust 2006-AR4, Structured Asset Mortgage Investments II Trust 2006-AR8, Bear Stearns Mortgage Funding Trust 2006-AR3, Bear Stearns Alt-A Trust 2006-7, Bear Stearns Alt-A Trust 2007-I, Bear Stearns Mortgage Funding Trust 2007-AR1, Bear Stearns Arm Trust 2007-3, Bear Stearns Mortgage Funding Trust 2007-AR3 and Bear Stearns Arm Trust Pension Trust Fund For Operating Engineers U.S. District Court for the Southern District of New York na Suit alleges fraudulent and misleading statements regarding the quality of securitized investments, including misleading statements regarding quality of underlying loans, such as loan-to-value ratio, debt-to-income levels, etc. Pension Trust Fund for Operating Engineers v. Structured Asset Mortgage Investments II, Inc. et al. Case No. 09-cv-6172-LTS July 9, 2009 www.mortgagedaily.com/MbsLitigation122909.asp
3rd quarter 2009 investor lawsuits

2nd quarter 2009 investor lawsuits

1st quarter 2009 investor lawsuits

4th quarter 2008 investor lawsuits

3rd quarter 2008 investor lawsuits

2nd quarter 2008 investor lawsuits

1st quarter 2008 investor lawsuits

full year 2007 investor lawsuits

 

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