Union Central Life Insurance

Goldman Sachs Settles RMBS Suit

On February 6, 2015, plaintiffs Union Central Life Insurance, Ameritas Life Insurance, and Acacia Life Insurance filed a letter with the court stating that they had reached an agreement with Goldman Sachs to settle claims arising out of the insurance companies’ investments in RMBS sponsored by Goldman Sachs.  The details of the settlement are not public.  The plaintiffs had asserted causes of action for violations of federal securities laws as well as for common law fraud, negligent misrepresentation, and unjust enrichment.  Letter.

Washington Mutual Settles RMBS Suit Brought by Union Central Life Insurance Co.

On December 17, 2012, two Washington Mutual affiliates settled a lawsuit brought against them by Union Central Life Insurance Co. concerning $4.3 million in Washington Mutual-sponsored RMBS purchased by Union Central.  In its amended complaint, Union Central alleged that Washington Mutual knowingly made false and misleading statements in the RMBS offering materials concerning the loans underlying the certificate, Washington Mutual’s compliance with its underwriting standards, and the accuracy of credit ratings assigned to the offered certificate.  Union Central asserted three causes of action against the Washington Mutual affiliates for common law fraud, unjust enrichment, and aiding and abetting.  Amended Complaint.  Judge George B. Daniels of the Southern District of New York so ordered Union Central’s notice of dismissal of the action with prejudice as to the two Washington Mutual defendants.  No terms of the settlement were provided.  Earlier this year in the same action, Union Central settled its claims against Wells Fargo.  The action continues against other defendants. Order.