Public Employees’ Retirement System of Mississippi

JP Morgan Settles RMBS Lawsuit for $500 Million

On February 1, JP Morgan Chase & Co. settled federal securities claims brought by investors led by the Public Employees’ Retirement System of Mississippi and the New Jersey Carpenters Health Fund related to Bear Stearns’ sale of $17.58 billion in residential mortgage-backed securities. The settlement is subject to approval by U.S. District Judge Laura Taylor Swain of the United States District Court of the Southern District of New York.  Settlement Agreement.

Bank of America Settles MBS Case for $315 Million

On December 5, 2011, lead plaintiff Public Employees’ Retirement System of Mississippi moved in the Southern District of New York for approval of a $315 million settlement with Merrill Lynch. In the class action lawsuit, plaintiff asserted claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, alleging that Merrill Lynch misrepresented the quality of the subprime mortgages underlying 84 different RMBS offerings. The proposed settlement was entered into after discovery had begun and following decisions of Merrill Lynch’s motion to dismiss and Plaintiff’s motion for class certification. Motion.

Royal Bank of Scotland and Ten Underwriters Move to Dismiss Remaining Subprime Mortgage Claims

On June 1, 2011, the Royal Bank of Scotland (“RBS”) moved to dismiss claims brought in the U.S. District Court for the Southern District of New York by investors in RBS preferred securities. Plaintiffs allege that RBS failed to disclose its exposure to subprime mortgage-backed assets early enough. Plaintiffs also allege that ten banks which underwrote the RBS preferred securities were negligent in preparing the offering documents. In January, Judge Deborah Batts dismissed approximately 95 percent of the claims – those brought by the Massachusetts Pension Reserves Investment Management Board and the Public Employees’ Retirement System of Mississippi. RBS argues in its motion that the remaining claims should be dismissed on forum non conveniens grounds and consolidated with litigation ongoing in the United Kingdom. The ten underwriters separately moved to dismiss, arguing that plaintiffs claims are untimely and fail to adequately allege violations of Sections 11 and 12(a)(2) of the ’33 Act. RBS Memo in Support. RBS Memo to Dismiss.