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, of which $24.6 million is to
Foreclosure Fiasco Fallout Now Also Includes Securities Suit
The foreclosure paperwork and processing mess has been unfolding on the front pages of the nation’s news papers for several weeks now. While the situation has created a lot of uncertainty, the one thing that seemed probable was that litigation would follow. But while the likelihood for lawsuits seemed high, it did not necessarily follow that
Jury Returns Plaintiffs’ Verdict in the BankAtlantic Credit Crisis-Related Securities Suit
In the first securities class action jury verdict to arise out the credit crisis, on Thursday November 18, 2010, the jury in the BankAtlantic securities lawsuit in federal court in Miami returned a verdict in the plaintiffs’ favor, finding seven of the statements at issue to have been false, and awarding damages of $2.41 per
U.S. Listed Chinese Companies Attracting Scrutiny, Securities Suits
For reasons I am sure they find good and sufficient, Chinese companies have been seeking listings on the U.S. securities exchanges. The Chinese companies (or at least some of them) have also been discovering an added side-effect of a U.S. listing – that is, exposure to a class action lawsuit under the U.S. securities laws.
Citigroup Subprime Securities Suit Narrowed, “Principal” CDO Claims Survive
In a November 9, 2010 order (here) in the Citigroup subprime-related securities suit, Southern District of New York Judge Sidney Stein dismissed a host of allegations and a number of individual defendants. However, Judge Stein denied the motion to dismiss as to plaintiffs’ claims regarding Citigroup’s exposure to its CDO portfolio, which Judge
Schwab Withdraws from Subprime Securities Suit Settlement
There is a reason that when class action settlements are announced, they are described as preliminary and subject to final approval – sometimes the settlements fall apart before the case is finally put to rest. That appears be what has happened with the Schwab YieldPlus subprime-related securities class action lawsuit.
As discussed here
Subprime Securities Suit Against Toll Brothers Settles for $25 Million
In a resolution of one of the longest running subprime-related securities class action lawsuits, the parties to the Toll Brothers subprime securities suit have agreed to settle the case for $25 million. The parties’ stipulation of settlement filed on October 28, 2010 can be found here.
The Toll Brothers case was among the
Mortgage-Backed Securities Investors’ Section 11 Claims Dismissed for Lack of “Cognizable Injury”
Among the many cases filed as part of the subprime litigation wave are the numerous cases filed on behalf of holders of mortgage-backed securities against the firms that issued the securities. In many of these cases, the plaintiffs have not alleged that they have failed to receive payments due under the securities, but rather they
Swiss Re Subprime Securities Suit Dismissed Based on Morrison
Yet another securities class action lawsuit against a non-U.S. company has been dismissed based on the U.S. Supreme Court decision in Morrison v. National Bank of Australia. In a decision that specifically addresses many of the questions that have been discussed in the wake of Morrison, Southern District of New York Judge John Koeltl
BankAtlantic Subprime Securities Suit Remains on Track For Trial This Week
As discussed in an earlier post, the BankAtlantic subprime related securities lawsuit is headed to trial. According to an October 5, 2010 Law.com article (here), jury selection in the case will begin this Friday, October 8, 2010, in federal court in Miami.
The Law.com article suggests the case has become contentious