S.D.N.Y. Judge Certifies RMBS Class Action by Institutional Investors Against Merrill Lynch

On June 15, 2011, District Judge Jed Rakoff of the S.D.N.Y. certified a class of institutional investors in an action against Merrill Lynch & Co. in connection with the purchase of certain RMBS. Plaintiffs bring claims under Sections 11, 12(a)(2), and 15 of the ’33 Act, alleging that the registration statements and prospectus supplements issued in connection with the certificates contained untrue statements of material fact concerning underwriting standards, LTV ratios, appraisals, debt-to-income ratios of applicants, and the credit quality of the loans underlying the certificates. Judge Rakoff issued this two-page order without an accompanying opinion, which will be released at a later date, so the reasoning behind this decision is unpublished. Order. Complaint.