New York State Court in Manhattan

Irish Fund Sues Deutsche Bank Over $960 Million in RMBS

On June 22, 2012, Sealink Funding Limited filed suit in New York State Court in Manhattan against Deutsche Bank and several of its units related to its alleged purchase of $960 million face amount of RMBS in 19 offerings in 2006 and 2007. Sealink alleges that Deutsche Bank misrepresented the originators’ compliance with underwriting guidelines, the validity of appraised values of the underlying mortgage loans and the LTV ratios based on those values, that all necessary steps had been taken to convey good title to the underlying mortgage loans into the securitization trust, and that the credit ratings assigned to the certificates accurately reflected their credit risk, among other things. Sealink’s causes of action include fraud, fraudulent inducement, and aiding and abetting fraud. Sealink seeks compensatory, rescissory, and punitive damages, in addition to costs and fees. Complaint.