On June 25, 2012, Deutsche Bank National Trust Company, trustee for the Morgan Stanley ABS Capital I Inc. Trust 2006 WMC-2, filed suit against WMC Mortgage, LLC and GE Capital in the District of Connecticut. The trustee asserts claims based on alleged breaches of contractual representations and warranties in the operative Pooling and Service Agreement regarding the quality of the mortgage loans held in the Trust and the underwriting practices used in connection with the issuance of those loans. The trustee alleges injuries of $650 million. Complaint.
District of Connecticut
RMBS Complaint Filed Against Countrywide in Connecticut
On January 27, 2011, Putnam Bank filed a putative class action in the District of Connecticut accusing Countrywide Financial Corp. (now an affiliate of Bank of America) and several executives of selling RMBS backed by materially false statements and omissions. The putative class covers purchasers and acquirers of eight different series of RMBS certificates issued between 2006 and 2007. Plaintiffs seek compensatory and/or recessionary damages under both Federal and Connecticut Securities laws. Complaint.