On April 17, Justice Marcy Friedman of the Supreme Court of the State of New York dismissed most claims in a suit against UBS AG and its subsidiaries arising out of RMBS purchases by plaintiff Deutsche Zentral-Genossenschaftsbank AG (DZ Bank). Following her prior decisions, Justice Friedman allowed fraud claims to proceed but dismissed plaintiff’s claims for fraudulent concealment, negligent misrepresentation, rescission based on mutual mistake, and punitive damages. The court allowed claims alleging aiding and abetting by parent companies UBS and UBS Americas Inc. to proceed based on allegations that the defendants shared high-level personnel. Decision.
Deutsche Zentral-Genossenschaftsbank AG
German Bank Sues Goldman Sachs Over $189 Million in RMBS
Deutsche Zentral-Genossenschaftsbank AG (DZ Bank) filed a summons with notice in New York State court on September 7, 2012, against several Goldman Sachs entities asserting claims in connection with DZ Bank’s alleged purchase of 9 RMBS for over $189 million. DZ Bank alleges that Goldman Sachs provided offering materials that misrepresented or omitted material information about, among other things, the underwriting standards used to originate the underlying loans, the statistical characteristics of the loans, and the transfer of the loans to the RMBS trusts. DZ Bank asserts causes of action for common-law fraud, fraudulent inducement, negligent misrepresentation, aiding and abetting fraud, declaratory judgment, and contract claims, including rescission, restitution, and mutual mistake. DZ Bank seeks compensatory damages, punitive damages, and rescission. Summons.
DZ Bank AG Sues UBS in New York State Court In Connection With $160 Million of RMBS
On July 25, Deutsche Zentral-Genossenschaftsbank AG (“DZ Bank”) filed a summons with notice against several UBS entities in the Supreme Court of the State of New York. DZ Bank alleges that UBS misrepresented the underwriting standards used to originate mortgage loans underlying RMBS that DZ Bank purchased for more than $160 million. DZ Bank also alleges that UBS’s offering materials misrepresented information about the legal validity of the trusts and the transfer of loans into the trusts. DZ Bank brings claims for common-law fraud, fraudulent inducement, negligent misrepresentation, aiding and abetting fraud, declaratory judgment, and contract claims, including rescission, restitution, and mutual mistake. Summons with Notice.