Union Central Life Insurance Company

New RMBS Investor Action Filed Against Credit Suisse in S.D.N.Y.

Union Central Life Insurance Company, Ameritas Life Insurance Corp., and Acacia Life Insurance Company (“Plaintiffs”) filed a complaint against Credit Suisse First Boston Mortgage Securities Corp., DLJ Mortgage Capital, Inc., and various executives of Credit Suisse First Boston (“Defendants”), alleging that defendants sold Plaintiffs approximately $55 million in RMBS pursuant to registration statements and prospectuses that contained false statements and omissions of material facts. Plaintiffs assert claims of common law fraud, negligent misrepresentation, unjust enrichment, and violations of Sections 10(b) and 20(a) of the ’34 Act and related Rule 10b-5. Plaintiffs allege that Defendants made false statements and omissions about the origination of the mortgage loans underlying the pools, quality of those loans, conformity with representations and warranties about loan quality, and fees paid to rating agencies. Plaintiffs also allege that Defendants omitted findings by a due diligence firm, Clayton Holdings, that many mortgage loans in the pools did not conform with the stated loan underwriting guidelines. The results of Clayton’s due diligence were allegedly disclosed during a hearing before the Financial Crisis Inquiry Commission. Complaint.