Royal Park and Wells Fargo Reach Settlement in RMBS Litigation

 

On January 14, U.S. District Judge Katherine Polk Failla of the Southern District of New York granted a joint request from plaintiff certificateholder Royal Park Investments SA/NV and defendant trustee Wells Fargo Bank NA to dismiss Royal Park’s remaining claims against Wells Fargo. The dismissal follows a settlement that resolves the litigation brought by Royal Park accusing Wells Fargo of breaching its contractual duties as trustee of two RMBS trusts, including the alleged failure to notify and enforce repurchase obligations of mortgage loan sellers for purported breaches of representations and warranties. The settlement also resolves a separate suit brought by Royal Park, which accused Wells Fargo of improperly financing its defense using money from two RMBS trusts. Wells Fargo maintained that it was entitled to reimbursement pursuant to the trusts’ governing agreements. Details of the settlement agreement were not disclosed as a stipulation of the voluntary dismissal.