LexisNexis® Legal Newsroom
$26M Settlement Reached In Mortgage-Backed Securities Shareholder Class Action

NEW YORK - (Mealey's) Lead plaintiffs in a securities class action lawsuit against The Goldman Sachs Group Inc. and others have agreed to settle their claims for more than $26 million, according to court documents filed yesterday in a New York federal court ( Public Employees' Retirement...

Judge Preliminarily OKs $590M Citigroup Securities Class Action Settlement

NEW YORK - (Mealey's) A federal judge in New York on Aug. 29 granted preliminary approval of a $590 million settlement between shareholders, Citigroup Inc. and certain of its current and former executive officers and directors on claims that the defendants misrepresented Citigroup's exposure...

$26M Settlement Reached in WaMu Mortgage-Backed Securities Class Action

SEATTLE - (Mealey's) Lead plaintiffs and defendants in a securities class action lawsuit against two subsidiaries of Washington Mutual Bank and certain of its officers and directors have agreed to a $26 million settlement on claims that the defendants misrepresented the investment quality of certain...

$26 Million Settlement Reached In WaMu Mortgage-Backed Securities Class Action

SEATTLE - (Mealey's) Lead plaintiffs and defendants in a securities class action lawsuit against two subsidiaries of Washington Mutual Bank and certain of its officers and directors have agreed to a $26 million settlement on claims that the defendants misrepresented the investment quality of certain...

$26M Settlement Reached In WaMu Mortgage-Backed Securities Class Action

SEATTLE - ( Mealeys ) Lead plaintiffs and defendants in a securities class action lawsuit against two subsidiaries of Washington Mutual Bank and certain of its officers and directors have agreed to a $26 million settlement on claims that the defendants misrepresented the investment quality of certain...

SEC, USAO Charge Former Broker with Securities Fraud Tied to Market Crisis

The SEC and the U.S. Attorney for the District of Connecticut filed, respectively, civil and criminal fraud charges against a former account executive at Jefferies & Co. arising out of the financial crisis. The charges center on the sale of mortgage backed securities or MBS to funds, including...

Standard & Poor’s Sued Over Inflated Ratings on Structured Debt Securities

LOS ANGELES - (Mealey's) The U.S. government on Feb. 5 announced the filing of a lawsuit in California federal court against Standard & Poor's Ratings Services alleging that the ratings agency lied about its objectivity and independence and issued inflated ratings on certain structured...

A Closer Look at the DoJ's Complaint against McGraw-Hill and S&P

By now you will have heard that the U.S. Department of Justice has filed a securities class action lawsuit against S&P and its corporate parent, McGraw-Hill, about the rating agency's ratings of collateralized debt obligations as the subprime meltdown unfolded. A copy of the DoJ's complaint...

Countrywide MBS Securities Suit Settles for $500 Million

In what is the largest settlement so far of an mortgage-backed securities class action lawsuit filed as part of the subprime and credit-crisis securities litigation wave, the parties to the consolidated Countrywide mortgage-backed securities suit pending in the Central District of California have...

Countrywide Reaches $500M Settlement in Mortgage-Backed Securities Class Actions

LOS ANGELES - (Mealey's) Countrywide Financial Corp. will pay $500 million to shareholders in three related securities class action lawsuits to settle claims that it misrepresented the investment quality of mortgage-backed securities (MBS) in what is being called the largest-ever MBS class action...

Parties To Countrywide Mortgage-Backed Securities Lawsuit Suit Settle For $500 Million

In what is the largest settlement so far of an mortgage-backed securities class action lawsuit filed as part of the subprime and credit-crisis securities litigation wave, the parties to the consolidated Countrywide mortgage-backed securities suit pending in the Central District of California have agreed...

Countrywide Financial Corp. Reaches $500 Million Settlement In 3 Mortgage-Backed Securities Class Actions

LOS ANGELES - (Mealey's) Countrywide Financial Corp. will pay $500 million to shareholders in three related securities class action lawsuits to settle claims that it misrepresented the investment quality of mortgage-backed securities (MBS) in what is being called the largest-ever MBS class action...

Court Dismisses ERISA Case Concerning Investments in Mortgage-Backed Securities

By Mark S. Thomas and Robert W. Shaw The U. S. Court of Appeals for the Second Circuit has affirmed the dismissal of a case brought against Morgan Stanley Investment Management Inc. ("Morgan Stanley") concerning certain investments in mortgage-backed securities that allegedly violated fiduciary...

Bank of America to Pay $1.7B to Settle Mortgage-Backed Securities Claims

NEW YORK - (Mealey's) Bank of America Corp. (BoA) will pay nearly $1.7 billion to MBIA Inc. and certain of its subsidiaries to settle claims in New York State court that BoA misrepresented the investment quality of and risk associated with certain mortgage-backed securities (MBS) it sold to MBIA...

Bank of America To Pay $1.7 Billion To Settle Mortgage-Backed Securities Claims

NEW YORK - (Mealey's) Bank of America Corp. (BoA) will pay nearly $1.7 billion to MBIA Inc. and certain of its subsidiaries to settle claims in New York State court that BoA misrepresented the investment quality of and risk associated with certain mortgage-backed securities (MBS) it sold to MBIA...

$1.7 Settlement Announced For Misrepresentation of Investment Quality of Mortgage-Backed Securities

NEW YORK - (Mealey's) Bank of America Corp. (BoA) will pay nearly $1.7 billion to MBIA Inc. and certain of its subsidiaries to settle claims in New York State court that BoA misrepresented the investment quality of and risk associated with certain mortgage-backed securities (MBS) it sold to MBIA...

3 Key Takeaways from the $13 Billion JPMorgan Settlement, and What It Means for the Future of Financial Fraud Cases

The record $13 billion mortgage-backed securities settlement that JPMorgan Chase just reached with federal and state regulators will be analyzed, reviewed, studied, and explored for quite some time to come. Here are three key takeaways the day after the settlement terms became final, focusing especially...

Morgan Stanley To Settle Mortgage-Backed Securities Claims For $1.25B

NEW YORK — (Mealey’s) Morgan Stanley will pay $1.25 billion to settle claims that it, certain of its subsidiaries and others misrepresented the investment quality in more than $10.58 billion in certificates in connection with 33 securitizations of residential mortgage-backed securities Morgan...

Barclays Bank Reaches $280M Settlement in Fannie, Freddie Lawsuits

NEW YORK — (Mealey’s) Barclays Bank PLC and certain of its affiliates will pay $280 million to settle claims with the Federal Housing Finance Agency (FHFA) in two related lawsuits alleging that Barclays and its affiliates misrepresented the investment quality of certain residential mortgage...

RBS to Pay $99.5M to Settle Claims In Fannie Mae, Freddie Mac Lawsuits

NEW YORK —(Mealey’s) Royal Bank of Scotland Securities Inc. (RBSSI) on Thursday agreed to pay $99.5 million to settle claims that it violated state and federal securities laws by misrepresenting the investment quality of residential mortgage-backed securities it underwrote that were subsequently...

Judge Orders Banks, Officer to Pay $1.3 Billion For Mortgage Fraud

NEW YORK — (Mealey’s) A New York federal judge yesterday ordered Bank of America Corp., as successor to Countrywide Financial Corp. and Countrywide Home Loans, and a former Countrywide officer to pay $1.3 billion in damages in connection with Countrywide’s residential mortgage lending...

A Closer Look at AIG’s $960 Million Credit Crisis-Related Securities Suit Settlement

AIG has agreed to pay $960 million to settle the consolidated securities class action lawsuit that had been filed against the company and certain of its directors and officers in the wake of the company’s near collapse at the peak of the credit crisis. The settlement, which AIG disclosed in its...

Bank of America to Pay Nearly $17B Over Handling of Subprime Mortgages

WASHINGTON, D.C. — (Mealey’s) Bank of America Corp. will pay nearly $17 billion to settle claims that it and its current and former subsidiaries, Countrywide Financial Corp. and Merrill Lynch, engaged in fraudulent activity with regard to their origination, underwriting and sale of subprime...

McGraw Hill, S&P to Pay $1.5B to Settle Fraud Claims Over Credit Ratings

WASHINGTON, D.C. — (Mealey’s) McGraw Hill Financial Inc. and its subsidiary, Standard & Poor’s Financial Services LLC (S&P Financial), announced today that they will pay a combined $1.5 billion to settle actions brought by the U.S. Department of Justice, the attorneys general...