Massachusetts Mutual

Mass Mutual Sues RBS Over $235 Million in RMBS Under Massachusetts’ Blue Sky Laws

On February 24, 2011, Massachusetts Mutual filed a complaint in the United State District Court for the District of Massachusetts against RBS Financial Products, a number of its affiliates (many of them also former Greenwich Capital entities), and certain former Greenwich Capital officers. The complaint alleges that defendants misrepresented the quality of the loans underlying $235 million worth of RMBS underwritten and sold by the corporate defendants to Mass Mutual. Plaintiff claims that defendants’ representations regarding underwriting standards, loan-to-value ratios, and rates of owner occupancy were materially false. The complaint seeks rescission and/or damages against the corporate defendants as primary violators of the Massachusetts Uniform Securities Act, and seeks to hold the officer defendants jointly and severally liable as controlling persons of the primary violators. Complaint.