Seventh Circuit Reverses Summary Judgment Ruling in RMBS Case

On August 21, 2015, a three-judge panel of the United States Court of Appeals for the Seventh Circuit reversed a Wisconsin federal judge’s ruling granting summary judgment to RBS Securities Inc. (“RBS”)  dismissing all but one of CUNA Mutual Group’s (“CUNA”) claims alleging that RBS had made material misrepresentations regarding RMBS it had sold.  The Seventh Circuit held that because CUNA’s claims against RBS sound in fraud rather than contract they are not time-barred under Wisconsin law.  The court also held that a reasonable juror could find that CUNA had relied on representations in the offering documents notwithstanding that CUNA’s trader could not recall whether he had actually read the specific representations or deal documents at issue in the case.  Order.