Pension Trust Fund for Operating Engineers

RMBS Cases Against UBS Dismissed as Time-Barred

On July 31, Judge Cecchi of the District of New Jersey dismissed with prejudice as time-barred claims filed by the Pension Trust Fund for Operating Engineers alleging misstatements and omissions in the offering documents for US$5 million in RMBS. Judge Cecchi determined that there were adequate storm warnings more than a year prior to the date when plaintiffs filed their claims that the originators of the loans underlying the securities at issue had abandoned their underwriting guidelines. The court held that this was sufficient to put the plaintiffs on inquiry notice and to trigger the running of the statute of limitations for their 1933 Act claims. A previous complaint had been dismissed as time barred with leave to amend, but the court determined that a second amended complaint would be futile and dismissed with prejudice. Order.

New Jersey Federal District Judge Dismisses Claims Against UBS as Untimely

On September 29, 2011, Judge Cavanaugh of the New Jersey federal district court dismissed a class action securities suit brought against UBS by RMBS investors. Judge Cavanaugh granted the motion to dismiss on statute of limitations grounds, finding that the lead plaintiff, Pension Trust Fund for Operating Engineers, did not adequately plead compliance with the statute of limitations by simply stating the complaint was timely. However, Judge Cavanaugh granted plaintiffs leave to amend. Plaintiffs allege claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. Decision.