Asset Management Fund Sues Banks For $500 Million

On February 1, 2012, Asset Management Fund filed a summons with notice against JPMorgan Chase, EMC Mortgage, Bear Stearns, Washington Mutual, Credit Suisse, Bank of America Securities, and related entities, in New York state court seeking $515.5 million in damages. AMF alleges that the RMBS offering materials issued by the banks contained material misrepresentations and omissions regarding the underwriting standards used to issue the loans and key statistical characteristics of the mortgage loans underlying the securities. The notice includes claims for common-law fraud, fraudulent inducement, negligent misrepresentation, aiding and abetting fraud, declaratory judgment, breach of contract, rescission, and restitution. Summons.