On August 17, Judge Lewis A. Kaplan of the United States District Court for the Southern District of New York certified a class of investors in an action brought by lead plaintiffs Wyoming State Treasurer and Wyoming Retirement System against several financial institutions in connection with RMBS issued by IndyMac. Judge Kaplan found that while the prospective class members’ claims differ in some respects, the central issue for all class members is whether IndyMac made material misrepresentations in its offering documents. Judge Kaplan rejected the defendants’ argument that individual issues regarding investor knowledge, reliance, and notice warranted the denial of class certification. However, the court dismissed claims in connection with one RMBS certificate because Wyoming Retirement System did not acquire the certificate in an initial offering. The class claims are alleged to arise under Sections 11, 12(a)(2), and 15 of the Securities Act. Decision.
Judge Lewis A. Kaplan
Federal Court Orders Bayerische Landesbank RMBS Lawsuits Back to State Court
On July 16, Judge Lewis A. Kaplan of U.S. District Court for the Southern District of New York remanded suits brought by Bayerische Landesbank against Bear Stearns and Merrill Lynch to the Supreme Court of the State of New York, where they were originally filed. The lawsuits allege that Defendants knowingly made misrepresentations in RMBS offering materials concerning the underwriting standards used in connection with the underlying mortgage loans. Defendants sought removal to federal court on the ground that the cases were related to bankruptcy proceedings of the originators of some of the underlying mortgages. Judge Kaplan’s remand order indicated that a further written order may be forthcoming. Order. Notice of Removal.
Plaintiff Seeks Class Certification Against Credit Suisse
On December 10, 2010, a Plaintiff filed a motion for class certification in an action regarding a $633 million mortgage-backed securities offering by Credit Suisse in 2006. The Plaintiff alleges that it has specifically identified 97 investors who are members of the putative class, and that 569 additional market participants purchased or sold the Certificates since 2006. The case is pending in the United States District Court for the Southern District of New York before Judge Lewis A. Kaplan. Memo of Law.