RMBS class actions

IndyMac Reaches Partial Settlement of RMBS Claims

Five former IndyMac executives have reached settlements with the plaintiffs in two RMBS class actions. On July 31 the lead plaintiff in the consolidated class actions filed a motion for approval of a US$6 million settlement of outstanding claims brought under 1933 Act Sections 11, 12(a)(2) and 15. In their motion for approval, Plaintiffs argue that the settlement is reasonable, among other reasons, because of concerns that the insurance policies covering the individual defendants will soon be exhausted. Even if the settlement is approved, the case will continue against various non-settling defendants, including the underwriters for the RMBS transactions at issue. Motion.