LexisNexis® Legal Newsroom
Courts Reject Hindsight Assessments, Dismiss Subprime Securities Suits

In recent decisions in separate subprime-related securities class action lawsuits reflecting a common unwillingness to engage in "backward looking assessments," two different Southern District of New York judges granted defendants' motions to dismiss. In each of the cases, the judge's...

RBS to Pay More Than $153M to Settle Federal Securities Law Violations

NEW HAVEN, Conn. — (Mealey’s) RBS Securities Inc. will pay more than $153 million to settle claims that it misrepresented the investment quality of a $2.2 billion residential mortgage-backed security (RMB) offering it was promoting in violation of federal securities law, according to court...

JPMorgan Offers $4.5 Billion Settlement to Mortgage-Backed Securities Trustees

NEW YORK — (Mealey’s) JPMorgan Chase & Co. will issue a binding offer to the trustees of 330 residential mortgage-backed securities (RMBS) trusts that were issued by J.P. Morgan Chase and Bear Stearns, after reaching a $4.5 billion agreement with 21 institutional investors, according...

JPMorgan Chase Reaches Record $13 Billion Mortgage-Backed Securities Settlement

JPMorgan Chase has reached a $13 billion settlement with regulators – the largest settlement with a single entity ever. The agreement resolves federal and state civil claims arising out of the packaging, marketing, sale, and issuance of residential mortgage-backed securities (RMBS) by JPMorgan...

Justice Department Reaches Record $13B Settlement with JPMorgan

WASHINGTON, D.C. — (Mealey’s) In what it is calling the largest settlement with a single entity in American history, the U.S. Department of Justice announced in a press release on Nov. 19 that it has reached a $13 billion settlement with JPMorgan to settle state and federal civil claims that...

Final Approval of $500M Countrywide Securities Settlement Granted

LOS ANGELES — (Mealey’s) A federal judge in California on Dec. 6 granted final approval of a record-setting $500 million securities class action settlement in three related actions against Countrywide Financial Corp. for misrepresenting the investment qualify of mortgage-backed securities...

RBS to Pay $275M to Settle Mortgage-Backed Securities Claims

NEW YORK — (Mealey’s) The Royal Bank of Scotland Group (RBS) will pay $275 million to settle claims that it concealed the investment quality of certain mortgage-backed securities sold in stock offerings in violation of federal securities laws, according to a press release issued today ( New...

S&P to Pay More Than $58M to Settle Claims in SEC Enforcement Action

WASHINGTON, D.C. — (Mealey’s) Credit ratings agency Standard & Poor’s (S&P) will pay more than $58 million and accept a one-year ban on rating conduit fusion commercial mortgage-backed securities (CMBS) as part of a settlement agreement reached today with the Securities and...

Standard & Poor’s Resolves Three SEC Actions, Makes Admissions

Standard & Poor’s Ratings Services was named as a Respondent in three settled administrative proceedings by the SEC. Each is tied to the Rating Services’ role in the conduit/fusion Commercial Mortgage Backed Securities market after the market crisis. In resolving one action S&P admitted...

S&P Settles Market Crisis Actions With DOJ, States

The Department of Justice, in conjunction with 19 states and the District of Columbia, resolved market crisis era suits in a $1.375 billion settlement. The DOJ suit named as defendants rating agency Standard & Poor’s Financial Services LLC and its parent McGraw-Hill Companies, Inc. The case...