On June 29, Judge Lewis A. Kaplan of the Southern District of New York certified a class of investors, led by Vaszurele Ltd., in their action against Credit Suisse Securities (USA) LLC (“Credit Suisse”). The investors allege that Credit Suisse misrepresented the underwriting quality of loans originated by IndyMac Bank FSB in a $642 million RMBS offering. The court found plaintiffs met each element for class certification, rejecting Credit Suisse’s argument that the varying sophistication of the investors should bar certification of the class. Decision.
Judge Lewis A. Kaplan of the Southern District of New York
$40 Million Settlement Approved in Lehman Brothers Case
On June 21, 2012, Judge Lewis A. Kaplan of the Southern District of New York approved a $40 million settlement in an RMBS class action brought by Locals 302 and 612 of the International Union of Operating Engineers – Employers Construction Industry Retirement Trust against Lehman Brothers and certain of its former officers and directors. The settlement resolved claims against the officers and directors only. In the same order, Judge Kaplan certified a plaintiff class for settlement purposes only. Order.