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Mortgage Investor Lawsuits First-Quarter 2010 First-Quarter 2010 Mortgage Litigation Index

Mortgage Investor Lawsuits
First-Quarter 2010 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
American Home Mortgage Servicing, Inc. Carrington Asset Holding Co. LLC, Carrington Investment Partners LLP, Carrington Capital Management, LLC, Stanwich Asset Acceptance Co. LLC Connecticut Superior Court- Judicial District of Stamford na Suit by investors in securitization alleging breach of contract by forced sale of foreclosed homes to free up cash to service servicer’s debt. Carrington Asset Holding Company LLC v. American Home Mortgage Servicing, Inc. FST-CV-09-5010295-S Feb. 10, 2009 www.mortgagedaily.com/LitigationMbs032910.asp
Banc of America Securities Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. Banc of America Securities 09-2-46319-1 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Bank of America Corporation, Kenneth D. Lewis, Joe L. Price, Neil A. Cotty, William Barnet, III, Frank P. Bramble, Sr., John T. Collins, Gary L. Countryman, Tommy R. Franks, Charles K. Gifford, Steven W. Jones, Walter E. Massey, Thomas J. May, Patricia E. Mitchell, Thomas M. Ryan, Temple O. Sloan, Jr., Meredith R. Spangler, Robert L. Tillman, Jackie M. Ward, Banc of America Securities LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated, UBS Securities LLC, Wachovia Capital Markets, LLC, Incapital LLC, Deutsche Bank Securities and J.P. Morgan Securities Inc. Dennis Montgomery, individually and on behalf of others similarly situated U.S. District Court for the Southern District of New York na Defendants allegedly violated the Securities Act of 1933 by misleading investors about its asset impairments and losses. Montgomery v. Bank of America Corporation et al. 1:2010cv00440 January 19, 2010 www.mortgagedaily.com/LitigationInvestors020910.asp
Bank of America Corporation; Kenneth D. Lewis; Joseph L. Price People of the State of New York, by Andrew M. Cuomo, Attorney General of the State of New York Supreme Court of the State of New York, County of New York na Defendants allegedly deceived shareholders by failing to disclose $16 billion in losses prior to its year-end 2008 acquisition of Merrill Lynch in order to get the merger approved. The suit further alleges that defendants manipulated the federal government with false claims that the company would back out of the acquisition without $20 billion in TARP funds. The People of the State of New York v. Bank of America Credit Corporation na na www.mortgagedaily.com/LitigationInvestors020910.asp
Bank of America, N.A. BNP Paribas Mortgage Corporation U.S. District Court for the Southern District of New York na Plaintiff alleges that it lost over $1.6 billion on asset-backed notes as a result of Bank of America’s actions. The securities involved loans originated by Taylor, Bean & Whitaker Mortgage Corp. and issued by Ocala Funding LLC. Bank of America acted as trustee and allegedly failed to monitor Ocala’s use of the funds and evaluate Ocala’s assets and liabilities before complying with withdrawal requests. BNP Paribas Mortgage Corporation v. Bank of America, N.A. 1:2009cv09783 November 25, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Bank of America, N.A. Deutsche Bank A.G. U.S. District Court for the Southern District of New York na Plaintiff alleges that it lost over $1.6 billion on asset-backed notes as a result of Bank of America’s actions. The securities involved loans originated by Taylor, Bean & Whitaker Mortgage Corp. and issued by Ocala Funding LLC. Bank of America acted as trustee and allegedly failed to monitor Ocala’s use of the funds and evaluate Ocala’s assets and liabilities before complying with withdrawal requests. Deutsche Bank A.G. v. Bank of America, N.A. 1:2009cv09784 November 25, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Barclays Capital, Inc. Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. Barclays Capital Inc. 09-2-46320-4 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Bear Stearns & Co., Inc. Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. Bear Stearns & Co, Inc. 09-2-46298-4 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Canadian Imperial Bank and 4 executives Investors US Dist Court for So. Dist. New York na Dismissal of class action suit was brought alleging misrepresentations relating to mortgage backed securities held by defendant bank. na na na www.mortgagedaily.com/LitigationInvestor032910.asp
Countrywide Financial Corp. na US Dist. Court Central Dist. California na Suit by RMBS investors alleging losses due to false/misleading statements, etc. na na na www.mortgagedaily.com/LitigationMbs032910.asp
Countrywide Financial Corporation; Countrywide Home Loans Inc.; CWALT Inc.; CWMBS, Inc.; CWABS, Inc.; CWHEQ, Inc.; Countrywide Capital Markets, Countrywide Securities Corporation; JP Morgan Securities; Deutsche Bank Securities; Bear Stearns & Co, Inc.; Banc of America Securities LLC; UBS Securities LLC; Morgan Stanley & Co. Incorporated; Edward D. Jones & Co. LP; Citigroup Global Markets, Inc.; Goldman Sachs & Co.; Credit Suisse Securities LLC (USA); Greenwich Capital Markets, Inc.; Barclays Capital Inc.; HSBC Securities (USA); BNP Paribas Securities Corp; Merrill Lynch, Perce, Fenner & Smith Incorporated; Stanford L Kurland; David A Spector; Eric P. Sieracki; N. Joshua Adler; Ranjit Kripalani; Jennifer S. Sandefur; David A. Sambol Maine State Retirement System, individually and on behalf of all others similarly situated U.S. District Court for the Central District of California na Class action alleges violations of the Securities Act by issuing the certificates pursuant to registration statements and prospectus supplements that misrepresented the quality of the underlying mortgages that had been pooled and placed in the issuing trusts. The representations made in the company’s prospectus supplements were materially false and misleading because at the time of the certificates offering, Countrywide’s underwriting standards were not designed to evaluate a borrower’s ability to repay or the true value of the mortgaged property underlying the certificates. Maine State Retirement System v. Countrywide Financial Corp. 10-cv-00302-SJO-PJW January 14, 2010 www.mortgagedaily.com/LitigationMbs020910.asp
Countrywide Securities Corp. Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. Countrywide Securities Corp. 09-2-46321-2 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Credit Suisse First Boston Mortgage Securities Corp. Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. Credit Suisse First Boston Mortgage Securities Corp. 09-2-46353-1 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Credit Suisse Securities (USA) LLC, Credit Suisse First Boston Mortgage Securities Corp., Deutsche Bank Securities, Inc., Deutsche Alt-A Securities, Inc., J.P. Morgan Securities, Inc., Structured Asset Mortgage Investments II, Inc., The Bear Stearns Companies, LLC, RBS Securities, Inc., RBS Acceptance, Inc., Greenwich Capital Acceptance, Inc., Morgan Stanley & Co., Inc., UBS Securities, LLC, Mortgage Asset Securitization Transactions, Inc., Banc of America Securities LLC, Banc of America Funding Corp., Banc of America Mortgage Securities, Inc., Countrywide Securities Corp., CWALT Inc., Countrywide Financial Corp., Does 1-50 Federal Home Loan Bank of San Francisco Superior Court of the State of California, County of San Francisco na Plaintiff filed complaint seeking rescission and contract damages as a result of misreps made by defendant sellers of certificates in various RMBS securitization trusts Federal Home Loan Bank of San Francisco v. Credit Suisse Securities, Inc. et al No. CGC-10-497840 March 15, 2010 www.mortgagedaily.com/LitigationMbs032910.asp
Deutsche Bank Securities Inc. Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit because of misleading statements on the mortgage-backed securities it invested in. Defendant allegedly issued misleading statements about the quality of underwriting, originators, and quality control. Federal Home Loan Bank of Seattle v. Deutsche Bank Securities Inc. 09-2-46351-4 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Deutsche Bank Securities, Inc, Deutsche Bank Alt-A Securities, Inc., DB Structured Products, Inc., J.P. Morgan Securities, Inc., Structured Asset Mortgage Investments II, Inc., The Bear Stearns Companies, LLC, Countrywide Securities Corp., Credit Suisse Securities (USA) LLC, RBS Securities, Inc., RBS Acceptance, Inc., RBS Holdings USA, Inc., Greenwich Capital Holdings, Inc., Morgan Stanley & Co., Inc., UBS Securities, LLC, Mortgage Asset Securitization Transactions, Inc., Merrill Lynch, Pierce, Fenner & Smith, Inc., Does 1-50 Federal Home Loan Bank of San Francisco Superior Court of the State of California, County of San Francisco na Plaintiff filed complaint seeking rescission and contract damages as a result of misrepresentations made by defendant sellers of certificates in various RMBS securitization trusts. Federal Home Loan Bank of San Francisco v. Deutsche Bank Securities, Inc. et al No. CGC-10-497839 March 15, 2010 www.mortgagedaily.com/LitigationMbs032910.asp
Eric S. Murphy, Jr. State of Maine Superior Court- Hancock na Defendant pled guilty to two counts of theft by deception in connection with a scam relating to residential construction loans. State of Maine v. Murphy na June 10, 2010 www.mortgagedaily.com/LitigationCriminal032910.asp
Goldman Sachs & Co. Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. Goldman Sachs & Co. 09-2-46349-2 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Jeffrey L. Levine, Delroy Oliver Davy and Mark Anthony McBride United States U.S. District Court for the Northern District of Georgia na Levine plead guilty to accounting fraud. McBride has agreed to plead guilty to fraudulently obtaining millions of dollars in loans and awaits sentencing. United States v. Levine 1:2009cr00554 December 22, 2009 www.mortgagedaily.com/LitigationCriminal011810.asp
Lawrence “Lee” Loomis Securities and Exchange Commission U.S. District Court for the Eastern District of California $10 million Defendant allegedly misappropriated funds from investors that he represented would be invested in real estate and secured by deeds of trust. SEC v. Loomis et al 2:10-cv-00458-MCE-KJN February 23, 2010 www.mortgagedaily.com/LitigationInvestor032910.asp
Merrill Lynch Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit because of misleading statements on the mortgage-backed securities it invested in. Defendant allegedly issued misleading statements about the quality of underwriting, originators, and quality control. Federal Home Loan Bank of Seattle v. Merrill Lynch 09-2-46352-2 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Metropolitan Mortgage & Securities investors of Metropolitan Mortgage & Securities U.S. Bankruptcy Court $38,000,000 Settlement proposed. In re. Metropolitan Mortgage & Securities na 2/4/2004 www.mortgagedaily.com/LitigationInvestor032910.asp
Moneygram International, Inc. na U.S. District Court for the District of Minnesota $80,000,000 Moneygram Int’l settles shareholders derivative suit by creating settlement fund to be paid out to investors who purchased or acquired common stock between January 24, 2007 and March 25, 2008. In Re Moneygram, Int’l No. 08-883-DSD www.mortgagedaily.com/LitigationInvestor032910.asp
Moody’s Investors Service, Standard and Poor’s Ratings Services Connecticut Attorney General Richard Blumenthal na na Conficts of interest alleged in ratings process. na na na www.mortgagedaily.com/ConncecticutVsRatingsAgenciesVideo031010.asp
Moody’s; Standard and Poor’s Ratings Services MBS investors U.S. District Court in New York na Investors’ lawsuit was dismissed. Plaintiffs claimed the two ratings agencies misled them by disregarding ratings guidelines, operating in conflicting roles, and sacrificing independence. na na na www.mortgagedaily.com/LitigationMbs020910.asp
Morgan Stanley & Co. Inc. Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. Morgan Stanley & Co. Inc. 09-2-46348-4 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Mortgage Asset Securitization Transactions, Inc., David Martin, Per Dyrvik, Hugh Corcoran, UBS Real Estate Securities, Inc., UBS Securities, LLC, Moody’s Investor Services, Inc., and The McGraw-Hill Companies, Inc. Locals 302 and 612 of the International Union of Operating Engineers- Employers Construction Industry Retirement Trust U.S. District Court for the District of New Jersey na Purchasers of RMBS-backed pass-through certificates sued defendant sellers and credit rating agencies alleging misrepresentations. Locals 302 and 612 of the Int’l Union of Operating Engineers-Employers Construction Industry Retirement Trust v. Mortgage Asset Securitization Transactions, Inc. et al No. 2:10-cv-00898-dmc-mf February 22, 2010 www.mortgagedaily.com/LitigationMbs032910.asp
na purchasers of MASTR Adjustable Rate Mortgages Trust Mortgage Pass-Through Certificates, Series 2007-3 na na Class action alleges misleading statements. na na na www.mortgagedaily.com/LitigationMbs032910.asp
RBS Securities, Inc. Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. RBS Securities Inc. 09-2-46347-6 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
State Street Bank Securities and Exchange Commission na $300,000,000 Settlement is in addition to nearly $350 million already paid by State Street to settle private investor claims. na na na www.mortgagedaily.com/LitigationMbs020910.asp
Sterling Financial Corporation, Sterling Savings Bank, Harold B. Gilkey, Robert G. Butterfield, Katherine K. Anderson, Ellen R. M. Boyer, William L. Eisenhart, James P. Fugate, James B. Keegan, Robert D. Larrabee, Donald J. Lukes, Michael F. Reuling, William W. Zuppe and John/Jane Does 1-15 Cory Deter, individually and on behalf of all others similarly situated U.S. District Court for the Eastern District of Washington na Employees of Sterling Savings Bank filed suit on the basis that the company allegedly failed to protect their investments in company stock. Deter v. Sterling Financial Corporation et al. 2:2010cv00012 January 11, 2010 www.mortgagedaily.com/Litigation011810.asp
Sterling Financial Corporation, Sterling Savings Bank, Harold B. Gilkey, Robert G. Butterfield, Katherine K. Anderson, Ellen R. M. Boyer, William L. Eisenhart, James P. Fugate, James B. Keegan, Robert D. Larrabee, Donald J. Lukes, Michael F. Reuling, William W. Zuppe and John/Jane Does 1-15 Cory Deter, individually and on behalf of all others similarly situated U.S. District Court for the Eastern District of Washington na Employees of Sterling Savings Bank filed suit on the basis that the company allegedly failed to protect their investments in company stock. Deter v. Sterling Financial Corporation et al. 2:2010cv00012 January 11, 2010 www.mortgagedaily.com/Litigation011810.asp
Stonewater Mortgage Corp., 44 defendants Larry Lattig, Litigation Trustee for the First Magnus Litigation Trust U.S. Bankruptcy Court for the District of Arizona $1,000,000,000 The judge dismissed many of the counts against most defendants outlined in the lawsuit. Larry Lattig, Litigation Trustee for the First Magnus Litigation Trust, Plaintiffs, vs. Stonewater Mortgage Corp., et al. Defendants Case No. 4:09-ap-00211-JMM Latest filing Feb. 26, 2009, original filing Aug. 21, 2007 www.mortgagedaily.com/LitigationBankruptcy032210.asp
Triad Guaranty Inc. James L. Phillips U.S. District Court for the Middle District of North Carolina Complaint filed. Phillips et al v. Triad na 2/6/2009 www.mortgagedaily.com/LitigationInvestor032910.asp
UBS Securities Federal Home Loan Bank of Seattle King County Superior Court of Washington na Plaintiff filed suit alleging that Defendant issued misleading statements about the quality of underwriting, originators, and quality control in connection with mortgage-backed securities. Federal Home Loan Bank of Seattle v. UBS Securities 09-2-46350-6 SEA December 23, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
US Bank National Association ND; Ace Securities Corp. Home Loan Trust 1999-A Asset Backed Notes, Series 1999-AA; U.S. Bank N.A.; Wilmington Trust Company; FirstPlus Home Loan Owner Trust 1996-2; FirstPlus Home Loan Owner Trust 1996-3; First Plus Home Loan Owner Trust 1996-4; FirstPlus Home Loan Owner Trust 1997-1; FirstPlus Home Loan Owner Trust 1997-2; FirstPlus Home Loan Owner Trust 1997-3; FirstPlus Home Loan Owner Trust 1997-4; FirstPlus Home Loan Owner Trust 1998-1; FirstPlus Home Loan Owner Trust 1998-2; FirstPlus Home Loan Owner Trust 1998-3; FirstPlus Home Loan Owner Trust 1998-4; FirstPlus Home Loan Owner Trust 1998-5; The Associates; CIT Group; Contimortgage Corporation; Goleta National Bank; Master Financial; Norwest Home Improvement, Inc. PSB Lending; Residential Funding Corporation Deanthony Thomas; Susan Jelinke-Thomas; Steven M. Rich U.S. Court of Appeals for the Eighth Circuit na Thomas brought suit in Missouri state court on behalf of himself and others similarly situated against thirty-three assignee banks of FirstPlus, alleging the loans they had received violated the Missouri Second Mortgage Loans Act. The Act places limits on the type and amount of closing costs and fees a lender can charge on residential, second mortgage loans secured by Missouri real estate. Specifically, Thomas alleged the subject loans violated Missouri law because (1) the borrowers were charged nonrefundable finder’s fees or broker’s fees that were prohibited or in excess of the fees allowed by the MSMLA and (2) FirstPlus charged certain closing costs and fees on behalf of third parties which were in excess of the costs actually charged by those third parties and then retained the difference. Thomas sought to recover the interest paid on the allegedly unlawful second mortgage loans and an order barring the collection of additional interest. Thomas v. US Bank National Association N.D. 08 3302 April 13, 2009 www.mortgagedaily.com/LitigationMbs020910.asp
Vestin Mortgage Inc. na Nevada court na Pending class action uses same strategy as California case. na na na www.mortgagedaily.com/LitigationInvestor032910.asp
Vestin Mortgage Inc. na Superior Court of California na Defendant wins class action suit in which plaintiffs alleged they were entitled to “roll-up” rights upon merger of two funds managed by Vestin. na na na www.mortgagedaily.com/LitigationInvestor032910.asp
4th quarter 2009 investor lawsuits

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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