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2 Subprime Suit Dismissal Motion Rulings

In two separate decisions, two courts issued opinions in cases that each related in different ways to Credit-Based Asset Servicing and Securitization, LLC , also known as C-Bass. As discussed below, Judge Rakoff has issued an opinion substantiating his prior dismissal motion rulings in the C-Bass subprime...

Massachusetts Attorney General Reaches $102 Million Settlement With Morgan Stanley

BOSTON - (Mealey's) Financial giant Morgan Stanley & Co. Inc. has agreed to pay $102 million to settle claims that it illegally provided funding to lenders that provided Massachusetts homeowners with subprime loans and has agreed to a number of reform measures, according to an assurance of discontinuance...

Goldman Sachs To Pay $550M To Settle Charges It Misled Subprime Investors

NEW YORK - Goldman, Sachs & Co. has agreed to pay $550 million in penalties and to change its business practices to settle allegations brought by the U.S. Securities and Exchange Commission that it misled investors in a subprime mortgage product, the SEC announced June 15 ( Securities and Exchange...

Citigroup Paying $75 Million To Settle Civil Charges

WASHINGTON, D.C. - (AP) Banking titan Citigroup Inc. is paying $75 million to settle civil charges that it misled investors about its potential losses from subprime mortgages as the housing bust hit in 2007. The Securities and Exchange Commission announced the settlement with Citigroup on Thursday. It...

Countrywide Agrees To Pay $600M To Settle Lawsuits

LOS ANGELES - (AP) Countrywide Financial Corp. agreed to pay $600 million to settle shareholder lawsuits in the largest payout so far from the mortgage meltdown. U.S. District Judge Mariana Pfaelzer in Los Angeles on Monday gave preliminary approval to the agreement, in which the defendants admitted...

Preliminary Approval Of $12 Million Settlement In New Century Class Action Granted

LOS ANGELES - (Mealey's) A federal judge in California on Aug. 9 preliminarily approved a $125 million settlement agreement between shareholders, former officers and directors of subprime mortgagor New Century Financial Corp., the company's outside auditor and the underwriters of New Century's...

Why Ambac's Subprime Securities Suit Settlement Is Noteworthy

In its December 15, 2010 filing of Form 8-K ( here ), Ambac Financial Group announced that it had entered a memorandum of understanding to settle the subprime-related securities class action lawsuits pending against the company and certain of its directors and officers for a payment of $27.1 million...

1st Circuit Affirms In Part, Reverses In Part Nomura Subprime Securities Suit Dismissal

As a result of the First Circuit's January 20, 2011 opinion, the plaintiffs in the Nomura Asset Acceptance Corporation mortgage-backed securities lawsuit have managed to revive a slender portion of their case, albeit on a rather precarious basis. The First Circuit otherwise affirmed the lower court's...

Credit Suisse Subprime-Related Securities Class Action Settles For $70 Million

In resolution of a securities case that at one time had actually been dismissed and that even after being revived was substantially narrowed based on the U.S. Supreme Court's Morrison decision, the parties to the Credit Suisse subprime-related securities class action lawsuit have reached a settlement...

FDIC Sues 3 Former Top Executives Of Failed WaMu

WASHINGTON, D.C. - (AP) Federal bank regulators have sued three former top executives of Washington Mutual, the biggest U.S. bank ever to fail, accusing them of negligence in allowing risky mortgage lending. The Federal Deposit Insurance Corp. filed the civil lawsuit Wednesday against former WaMu CEO...

Kevin LaCroix: Catching Up On Rulings In Key Subprime-Related Securities Lawsuits

Over the last few days, there have been a series of rulings in high-profile lawsuits arising out of the subprime meltdown and credit crisis. As discussed below, just in the past week there were dismissal motion rulings in cases involving Freddie Mac, Wachovia/Wells Fargo, and AIG. Though some or all...

Plaintiff Jury Verdict In BankAtlantic Subprime Securities Lawsuit Set Aside

The jury verdict entered in favor of the plaintiffs in the BankAtlantic subprime-related securities suit has been set aside by the court in a post-trial ruling. On April 25, 2011, Southern District of Florida Judge Ursula Ungaro , in a 112-page opinion ( here ), granted the defendants' motion for...

Oppenheimer Funds Subprime Securities Suits Settle For $100M

The parties to two of the consolidated subprime-related securities lawsuits pending against Oppenheimer Funds have settled the case for a total of $100 million. This settlement has a number of interesting features, as discussed further below, including in particular aspects of the allocation of the total...

Judge Denies Motion To Dismiss In Regions Financial Corporation Subprime Securities Lawsuit

In a decision that largely turned on detailed confidential witness statements, on June 7, 2011, Northern District of Alabama Judge Inge Prytz Johnson denied the motions to dismiss in the Regions Financial Corporation subprime-related securities lawsuit. This ruling is the latest of a series of decisions...

JPMorgan Settles With The SEC

The SEC announced that JPMorgan Securities LLC agreed to pay $153.6 million to settle SEC charges that the company "misled investors in a complex mortgage securities transaction just as the housing market was starting to plummet." Pursuant to the settlement, "harmed investors will receive...

Wachovia, KPMG Reach $627 Million Settlement With Investors

NEW YORK - (Mealey's) In what Wachovia Corp. shareholders' attorneys are calling the single-largest recovery for claims brought "solely pursuant to" the Securities Act of 1933, the shareholders, Wachovia, certain of its affiliates and former officers and directors and outside auditor...

Wachovia, KPMG Reach $627 Million Settlement With Investors

NEW YORK - (Mealey's) In what Wachovia Corp. shareholders' attorneys are calling the single-largest recovery for claims brought "solely pursuant to" the Securities Act of 1933, the shareholders, Wachovia, certain of its affiliates and former officers and directors and outside auditor...

New York Comptroller, National City Corp. Settle Securities Class Action Lawsuit For $168 Million

In the latest eye-popping subprime-related securities class action lawsuit settlement, the parties to the National City Corporation securities class action lawsuit have agreed to settle the case for $168 million. The proposed settlement is subject to court approval. The August 8, 2011 press release of...

Former Colonial Bank Executives Agree To Settle Class Action Lawsuit For $10.5 Million

In a settlement that apparently will be funded entirely by D&O insurance, the plaintiffs and 23 former executives of the failed Colonial Bank of Montgomery, Alabama have agreed to settle the class action securities lawsuit that investors filed in connection with the bank's 2009 collapse, for...

Parties To Consolidated MBIA Subprime Securities Action Agree To Settle For $68 Million

According to papers filed on September 6, 2008, the parties to the consolidated MBIA securities action pending in the Southern District of New York have agreed to settle the lawsuit for $68 million. The settlement is subject to court approval. As noted below, the settlement has some interesting features...

E*TRADE Announces $79 Million Settlement Of Subprime Claims In Securities Lawsuit

NEW YORK - (Mealey's) E*TRADE Financial Corp. has agreed to a $79 million settlement with investors to settle claims that it misrepresented the risk associated with its investment in subprime mortgage-backed securities in violation of federal securities laws, according to a Securities and Exchange...

Countrywide Agrees To Pay $335 Million To Settle Government's Discriminatory Lending Claims

LOS ANGELES - Countrywide Financial Corp. has agreed to pay $335 million to settle claims by the U.S. government that the lender and its subsidiaries engaged in discriminatory lending practices by steering African-American and Hispanic borrowers toward subprime mortgage loans with higher interest rates...

E*TRADE Announces $79 Million Settlement Of Subprime Claims In Securities Lawsuit

NEW YORK - (Mealey's) E*TRADE Financial Corp. has agreed to a $79 million settlement with investors to settle claims that it misrepresented the risk associated with its investment in subprime mortgage-backed securities in violation of federal securities laws, according to a Securities and...

Lead Plaintiffs In Securities Class Action Lawsuit Against Goldman Sachs Agree To Settlement

NEW YORK - (Mealey's) Lead plaintiffs in a securities class action lawsuit against Goldman Sachs & Co. Inc., certain of its subsidiaries and officers and directors and three ratings agencies have agreed to settle their claims against the defendants, according to a letter sent July 18 to the federal...

State Net Capitol Journal – February 2, 2015; Suit Blames Morgan Stanley For Detroit's Fiscal Crisis

Budget & Taxes SUIT BLAMES MORGAN STANLEY FOR DETROIT'S FISCAL CRISIS: The Wall Street investment firm that has already agreed under settlements with U.S. government regulators to pay over $1.5 billion for its part in the subprime mortgage scandal that helped precipitate the Great Recession...