Ill. Lawsuit Claiming Misrepresentations in Multiple RMBS Transactions Must Be Severed Into Multiple Actions

On November 29, 2010, Federal District Court Judge Milton I. Shadur sua sponte issued a Memorandum Order stating that if the action brought by the Federal Home Loan Bank of Chicago against 53 different named defendants arising out of 34 RMBS purchases “is to proceed in this federal court, it must do so through multiple law suits . . . .” The defendants recently removed the case from the Cook County, Illinois Circuit Court to the United States District Court for the Northern District of Illinois. FHLBC’s counsel stated at a November 30 hearing that it will ask the judge to remand the case to state court. Court Order. Hearing Transcript.