|
Defendant
|
Plaintiff
|
Court
|
Amount
|
Overview
|
Case Title
|
Case Number |
Date Filed |
Link to Story |
| American International Group |
n/a |
n/a |
n/a |
This closely watched credit-crisis case was dismissed. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationInvestor041410.asp |
| Colonial BancGroup Inc., current and prior directors of The Colonial BancGroup Inc., former chairman and chief executive officer Robert E. Lowder, chairman Simuel Sippial Jr. |
na |
.S. District Court for the Middle District of Alabama |
$115,000,000 |
Directors of bankrupt bank sued over failure of Colonial Bank |
“In re Colonial BancGroup Inc. Securities Litigation. |
Case No. CV 3:09-cv-00104-MHT-WC |
na |
www.mortgagedaily.com/ColonialDirectors060410.asp |
| Corus Bankshares, Inc.; Robert J. Glickman; Tim H. Taylor |
Tracy Jones, on behalf of himself and all others similarly situated |
United States District Court for the Northern District of Illinois |
n/a |
The suit is brought on behalf of all purchasers of Corus’s common stock between January 25, 2008 and January 30, 2009. During that period, plaintiffs claim that Corus made numerous false and misleading statements about its lending practices, capital position, and loan loss reserves, and that these statements artificially inflated the price of Corus common stock. Recently, a motion to dismiss by Corus Bankshares Inc. was denied. |
Jones v. Corus Bankshares, Inc. et al. |
09CV1538 |
3/11/09 |
www.mortgagedaily.com/LitigationInvestor041410.asp |
| Countrywide Financial Corporation and KPMG |
Thomas P. DiNapoli and the New York City Pension Funds (lead plaintiffs in a class action) |
U.S. District Court for the Central District of California |
$600,000,000 |
Defendant agreed to settle allegations of investor fraud for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Defendant allegedly misstated and omitted material facts about underwriting risky loans, causing investors a loss of $25 billion. The proposed settlement calls for Countrywide to pay $600 million and Countrwide’s accounting firm, KPMG, to pay $24 million. |
In re: Countrywide Financial Corporation Securities Litigation |
No. CV 07-05295 MRP (MANx) |
February 6, 2009 (Second Consolidated Amended Complaint) |
www.mortgagedaily.com/SettlementCountrywide050710.asp |
| MBIA |
n/a |
n/a |
n/a |
This closely watched credit-crisis case was dismissed. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationInvestor041410.asp |
| Merrill Lynch |
n/a |
n/a |
n/a |
This closely watched credit-crisis case was dismissed. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationInvestor041410.asp |
| Wachovia, Wells and former executives and directors |
Lead plaintiffs are three pension funds |
U.S. District Court for the Southern District of New York |
na |
Amended complaint filed. |
na |
na |
na |
www.mortgagedaily.com/MctLawsuitWachovia061110.asp |
| Bear Stearns & Company, Inc., Frederick W. Barney, Jr., The Bear Stearns Companies, Inc. and JP Morgan Chase & Company |
Republic Bank & Trust Company |
U.S. District Court, W.D. Kentucky, Louisville Division |
n/a |
Republic Bank & Trust Co.’s lawsuit was dismissed. Republic sued for fraud, negligent misrepresentation, and violations of Kentucky’s Blue Sky Law in connection with Defendants’ sale of securities. Republic admitted to not reading the relevant prospectuses prior to purchasing the securities. |
Republic Bank & Trust Co. v. Bear, Stearns & Co. Inc., et al. |
Civil Action No. 3:09-CV-287-S |
17-Apr-09 |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Citigroup Mortgage Loan Trust Inc., Citigroup Mortgage Loan Trust 2007-2, Citigroup Trust 2007-6, Citigroup Mortgage Loan Trust 2007-AHL 1, Citigroup Mortgage Loan Trust 2007-AHL 2, Citigroup Mortgage Loan Trust 2007-AHL 3, Citigroup Mortgage Loan Trust 2007- AMC 1, Citigroup Mortgage Loan Trust 2007-AMC 2, Citigroup Morgage Loan Trust 2007- AMC 3, Citigroup Mortgage Loan Trust 2007-AMC 4, Citigroup Mortgage Loan Trust 2007-AR 1, Citigroup Mortgage Loan Trust 2007-AR 4, Citigroup Mortgage Loan Trust 2007-AR 5, Citigroup Mortgage Loan Trust 2007-AR 7, Citigroup Mortgage Loan Trust 2007-OPX 1, Citigroup Mortgage Loan Trust 2007-WFHE 1, Citigroup Mortgage Loan Trust 2007-WFHE 2, Citigroup Mortgage Loan Trust 2007-WFHE 3, Citigroup Mortgage Loan Trust 2007-WFHE 4, Citigroup Global Markets Inc., Rendall Costa, Scott Freidenrich, Peter Patricola, Mark I. Tsesarsky, Jeffrey Perlowitz, Evelyn Echevarria |
City of Ann Arbor Employees’ Retirement System, Individually and on behalf of all other similarly situated |
U.S. District Court for the Eastern District of New York |
n/a |
Defendants’ motion to dismiss was granted, with leave for plaintiffs’ to replead. The issue was whether plaintiffs had standing to bring claims. Courts require named plaintiffs to have actually purchased the same securities as the class they seek to represent. |
City of Ann Arbor Employees’ Retirement System v. Citigroup Mortgage Loan Trust Inc., et al. |
No. 2:08-cv-08-1418 |
7-Apr-08 |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Countrywide Financial Corporation, Countrywide Home Loans, Inc., and Countrywide Home Loans Servicing LP |
Greenwich Financial Services Distressed Mortgage Fund 3 LLC, and QED LLC, on Behalf of Themselves and all Others Similarly Situated |
U.S. Court of Appeals, Second Circuit |
n/a |
The Second Circuit dismissed Plaintiffs’ appeal of the District Court’s decision to remand the case back to state court. Plaintiff is an investor in Countrywide RMBS and claims that loan modifications under a massive predatory settlement by the Bank of America Corp. subsidiary should enable to trusts to require Countrywide to repurchase modified loans at a price of the unpaid principal balance plus accrued interest. |
Greenwich Fin. Servs. Distressed Mortgage Fund 3 LLC v. Countrywide Financial Corp. |
Case No. 09-3660-cv |
1-Dec-08 |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Deutsche Atl-A Securities, Deutsche Bank Securities, DB Structured Products, Inc., Anilesh Ahuja, Richard W. Ferguson, Joseph J. Ricke, Richard d’Albert, Keven P. Burns |
Massachusetts Bricklayers and Masons Funds and the Pipefitters’ Retirement Fund Local 598, Individually and on behalf of all others similarly situated |
U.S. District Court for the Eastern District of New York |
n/a |
Defendants’ motion to dismiss was granted, with leave for plaintiffs’ to replead. The issue was whether plaintiffs have standing to bring claims. Courts require named plaintiffs to have actually purchased the same securities as the class they seek to represent. This case mentions City of Ann Arbor Employees’ Retirement System v. Citigroupe Mortgage Loan Trust Inc., as raising almost identical issues concerning plaintiffs’ standing. |
Massachusetts Bricklayers and Masons Fund and the Pipefitters’ Retirement Fund Local 598 v. Deutsche Alt-A et al. |
No. CV 08-3178 |
June 18, 2009 (Amended Complaint) |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Deutsche Bank Securities Inc.; Deutsche Atl-A Securities, Inc.; DB Structured Products, Inc.; J.P. Morgan Securities, Inc., F/K/A Bear, Stearns & Co. Inc.; Structured Asset Mortgage Investments II. Inc.; The Bear Stearns Companies, LLC, F/K/A The Bear Stearns Companies, Inc.; Countrywide Securities Corporation; Credit Suisse Securities (USA) LLC, F/K/A Credit Suisse First Boston LLC; RBS Securities, Inc., F/K/A/ Greenwich Capital Markets Inc.; RBS Acceptance, Inc., F/K/A Greenwich Capital Acceptance, Inc.; RBS Holdings USA, Inc., F/K/A Greenwhich Capital Holdings, Inc.; Morgan Stanley & Co. Inc.; UBS Securities, LLC; Mortgage Asset Securitization Transactions, Inc.; Merryl Lynch, Pierce, Fenner & Smith, Inc.; and, Does 1-50 |
Federal Home Loan Bank of San Francisco |
San Francisco Superior Court |
n/a |
Plaintiff alleges that Defendants misled them about the credit quality and risks of loans behind 1.9 billion in private-label residential mortgage-backed securities by making false statements or omitting imporant information about the loans. |
Federal Home Loan Bank of San Francisco v. Deutsche Bank, |
Case No. 10-497839 |
15-Mar-10 |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Deutsche Bank; DBSI |
na |
U.S. District Court for the Eastern District of New York |
n/a |
Defendants’ motion to dismiss complaint was denied in part. The case is tied to Deutsche’s issuance and underwriting of mortgage-backed securities. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Goldman, Sachs & Company and Fabrice Tourre |
Securities and Exchange Commission |
U.S. District Court for the Southern District of New York |
$850,000,000 |
The SEC’s complaint alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligtion that hinged on the performance of subprime residential mortgaged-backed securities, yet failed to disclose to investors vital information about the CDO, for example, that the hedge fund in fact had taken a short position against the same CDO it structured and marketed. The case ultimately settled with Goldman agreeing to pay $550 million for civil fraud and $300 million in fines. |
Securities and Exchange Commission v. Goldman Sachs & Co. and Fabrice Tourre |
10-CV-3229 |
16-Apr-10 |
www.mortgagedaily.com/LitigationMbs051910.asp, www.mortgagedaily.com/SecVsGoldmanSachsVideo041610.asp |
| Moody’s Investors Services |
California Attorney General Edmund G. Brown Jr. |
n/a |
n/a |
California AG Edmund G. Brown announced legal action against Defendant as a result of Defendant ignoring a subpoena issued in September 2009 to investigate why Defendant gave its highest ratings to “risky and toxic” MBS. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Moody’s Investors Services , Fitch Ratings and Standard and Poor’s Rating Services |
Ronald Grassi and Sally Grassi |
California Eastern District Court |
n/a |
The court dismissed Plaintiffs’ lawsuit claiming Defendants were negligent in rating Lehman bonds to curry favor with Lehman, which filed bankruptcy in September. The judge ruled that the case can be re-filed with more details in 30 days. |
Grassi, et al. v. Moody’s Investors Services et al. |
Case No. 2:2009cv00543 |
24-Feb-09 |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Morgan Keegan & Company, Inc., Morgan Asset Management, Inc., James C. Kelsoe, Jr., and Joseph Thompson Weller, CPA |
Securities and Exchange Commission |
n/a |
n/a |
The SEC announced administrative proceedings against Defendants accused of fraudulently overstating the value of securities backed by subprime mortgages. The firm alleged failed to employ reasonable procedures to internally price the portfolio securities in five funds managed by Morgan Asset, leading to inflated prices for net asset values. |
In re the Matter of Morgan Asset Management, Inc. et al. |
n/a |
7-Apr-10 |
www.mortgagedaily.com/LitigationMbs051910.asp |
| Residential Capital, LLC, Residential Funding, LLC, Residential Accredited Loans, Inc., Bruce J. Paradis, Kenneth M. Duncan, Davee L. Olsen, Ralph T. Flees, Lisa R. Lundsten, James G. Jones, David M. Bricker, James N. Young, Residential Funding Securities Corp. d/b/a CMAC RFC Securities, Goldman, Sachs & Co., RBS Securities, Inc., d/b/a RBS Greenwhich Capital, Deutsche Bank Securities, Inc. Citigroup Gobal Markets, Inc., Credit Suisse Securities (USA) LLC, Bank of America Corp., as successor-in-interest to Merril Lynch, Pierce, Fenner & Smith, Inc., UBS Securities, LLC, JP Morgan Chase, Inc. as successor-in-interest to Bear Stearns & Co., Inc., and Morgan Stanley & Co., Inc. |
New Jersey Carpenters Health Fund, New Jersey Carpenders Vacation Fund and Boilermaker Blacksmith National Pension Trust, on Behalf of Themselves and All Others Similarly Situated |
U.S. District Court for the Southern District of New York |
n/a |
Plaintiffs claimed violations of the Securities Act of 1933 for alleged omission and misstatement in publicly-filed registration statements and prospectuses of mortgage-backed securities. Plaintiffs’ claims were related to offerings they did not purchase and were dismissed for lack of standing with leave to re-plead. Claims related to the alleged disregard of underwriting guidelines may proceed. |
New Jersey Health Fund v. Residential Capital, LLC |
Case No. 08-cv-8781 |
|
www.mortgagedaily.com/LitigationMbs051910.asp |
| The Charles Schwab Corporation, Charles Schwab & Co. Inc., Charles Schwab Investment Management, Inc., Charles R. Schwab, Evelyn Dilsaver, Randall W. Merk and George Pereira |
Mike Labins, on Behalf of Himself and all Other Similarly Situated |
U.S. District court-Northern District of California |
$235,000,000 |
Defendants agreed to settle all claims tied to its Schwab YieldPlus Fund, an “ultra-short bond fund” that invested in fixed-income instruments including asset-backed securities, mortgage-backed securities and corporate bonds. Defendants were accused of violation of the Securities Act of 1933. |
Mike Labins, et al. v. The Charles Schwab Corporation, et al. |
08-CV-01510 |
18-Mar-08 |
www.mortgagedaily.com/LitigationMbs051910.asp |
| C L and M, Inc.; Donald Dodge; Financial Resources Mortgage, Inc.; Scott D. Farah |
U.S. Securities & Exchange Commission |
United States District Court for the District of New Hampshire |
$20,000,000 |
The defendants allegedly did not segregate investor money and used it for a variety of purposes not authorized by the offering documents, including paying returns to earlier investors, paying personal expenses, paying operating expenses of Financial Resources Mortgage Inc. and C L and M Inc., and donating money to the Center Harbor Christian Church, a church founded and owned by Scott Farah’s father, and of which Scott Farah was treasurer. |
SEC v. Farah |
1:2010cv00135 |
4/9/10 |
www.mortgagedaily.com/LitigationInvestor041410.asp |
| BankUnited Financial Corp.; Alfred R. Camner; Ramiro A. Ortiz; Humerto L. Lopez |
Waterford Township General Employees Retirement System, individually and on behalf of all others similarly situated |
United States District Court for the Southern District of Florida |
n/a |
Plaintiffs allege that during the class period Defendants “embarked upon, and implemented, an unlawful strategy for increasing BankUnited’s market value artificially.” This unlawful strategy included Defendants’ repeated assurances in public releases, statements, and reports as to BankUnited’s strict credit quality standards, conservative appraisal and underwriting practices, adequate loan loss reserve ratios, and strong capital position. Plaintiffs assert that these representations were misleading, and served to conceal the unsound undertakings that increasingly characterized the Bank’s lending practices. |
Waterford Township General Employees Retirement System v. BankUnited Financial Corporation et al. |
1:2008cv22572 |
9/16/08 |
www.mortgagedaily.com/LitigationInvestor041410.asp |
| na |
Colonial BancGroup Inc. |
U.S. Bankruptcy Court for the Middle District of Alabama |
|
Directors of bankrupt bank sought court approval of additional expenditures relating to the cost of legal defense based on numerous lawsuits and governmental investigations arising out of failure of Colonial Bank |
In Re The Colonial BancGroup, Inc. |
No. 09-32303-DHW |
8/25/2009 |
www.mortgagedaily.com/ColonialDirectors060410.asp |
| na |
Fremont General Corp. |
U.S. Bankruptcy Court for the Central District of California, Santa Ana Division |
n/a |
Fremont General Corp. filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in June 2008. A reorganization plan has been approved and confirmed whereby Signature Group Holdings LLC will infuse $10.3 million in capital and Fremont’s name will change to Signature Group Holdings Inc. |
In re: Fremont General Corporation, a Nevada corporation |
Case No. 8:08-bk-13421 |
18-Jun-08 |
www.mortgagedaily.com/FremontBankruptcy061410.asp |
| Taylor Bean & Whitaker Mortgage Corporation; Freddie Mac; Ginnie Mae; Sovereign Bank |
Lloyd’s London |
U.S. Bankruptcy Court for the Middle District of Florida |
$50,000,000 |
Former executives of Taylor Bean & Whitaker Mortgage Corp. are accused of improperly taking more than $50 million from the failed company. The company lost its Federal Housing Administration approval in August 2009. Within a few days, new business was suspended and 964 employees were given notice. Taylor Bean filed for relief under Chapter 11 of the US Bankruptcy Code later that month. |
In re:Taylor Bean & Whitaker Mortgage Corp. |
3:09-bk-07047 |
8/1/09 |
www.mortgagedaily.com/LawsuitTaylorBean051810.asp |
| David Fili |
n/a |
Lawrence District Court |
$25,000 |
Defendant allegedly told a local couple that they would own a percentage stake in a mortgage company once they deposited $25,000 in the company. Fili, however, used the money for his personal use. |
n/a |
n/a |
n/a |
www.mortgagedaily.com/LitigationInvestor041410.asp |
| Lee Farkas |
United States of America and the SEC |
U.S. District Court for the Middle District of Florida (criminal case) and U.S. District Court for the Eastern District of Virginia (civil case) |
$400,000,000 |
Defendant is the former chairman of Taylor, Bean and Whitaker Mortgage Corp., and faces criminal and civil allegations of allegedly using $400 million in warehouse financing to fund fake loans to cover up Taylor Bean and Whitaker’s overdrafts and operating losses. |
Securities and Exchange Commission, Plaintiff, v. Lee B. Farkas, Defendant. |
Civil Action File No. 1:10cv667 |
16-Jun-10 |
www.mortgagedaily.com/ArrestLeeFarkas061610.asp |
