On November 10, 2011, IKB Deutsche Industriebank AG sued several Credit Suisse entities in the Supreme Court of New York, bringing claims for common law fraud, aiding and abetting fraud, and negligent misrepresentation, as well as claims under Sections 11, 12 and 15 of the Securities Act of 1933, in connection with nearly $215 million in RMBS allegedly purchased by IKB. To date, IKB has filed only a summons with notice. Without making any factual allegations, IKB seeks rescission and damages. Summons.
Supreme Court of New York
Monoline Insurer Assured Files Suit Against DLJ and Credit Suisse
On October 17, 2011, Assured Guaranty Municipal Corp. filed a lawsuit in the Supreme Court of New York against DLJ Mortgage Capital, Inc. and Credit Suisse Securities for breaches of mortgage representations and repurchase obligations in connection with six RMBS. Assured, which insured the securities, alleges that DLJ warranted and vouched for the quality of the loans and agreed to repurchase, substitute, or cure any loans that breached the warrantees. Assured also alleges that its forensic re-underwriting review revealed that 93% of the underlying loans did not meet the agreed-upon qualifications. Assured asserts claims for breach of contract and declaratory judgment. Complaint.
Allstate Sues Goldman Sachs in New York State Court
On August 15, 2011, Allstate Insurance Co. filed suit against Goldman Sachs in the Supreme Court of New York, alleging that Goldman committed common law fraud, fraudulent inducement, and negligent misrepresentation in connection with the sale of $123 million in RMBS purchased by Allstate and underwritten by Goldman over the course of five securitizations. Allstate’s complaint relies on the results of several government investigations into the financial crisis, including the U.S. Senate Permanent Subcommittee on Investigation’s April 2011 report entitled “Wall Street and the Financial Crisis” and the Financial Crisis Inquiry Commission’s January 2011 report. Complaint.
Allstate Sues Morgan Stanley in New York State Court for Concealing and Misrepresenting Loan Quality in RMBS Pools
On July 5, 2011, Allstate Insurance Co. filed suit against Morgan Stanley in the Supreme Court of New York, alleging that Morgan Stanley committed common law fraud and negligent misrepresentation in connection with the sale of $104 million in RMBS purchased by Allstate. Complaint.