On July 12, 2017, the Royal Bank of Scotland (RBS) and the Federal Housing Finance Agency (“FHFA”) announced an agreement to settle claims arising out of RBS’s sale of allegedly faulty residential mortgage-backed securities (“RMBS”). RBS will pay $5.5 billion
Business Litigation Blog
Litigation News for the Business Community
The Business Litigation Blog, published by Lowenstein Sandler LLP, focuses on legal issues related to business disputes and commercial litigation. It covers topics such as securities fraud, class actions, arbitration, contract disputes, regulatory investigations, and enforcement actions. The blog analyzes court decisions affecting business litigation, including matters involving investment funds, mergers and acquisitions, and commercial contracts. It also addresses procedural aspects like class settlement approvals and arbitration waiver standards. The content is aimed at providing insights into litigation strategies, recent developments in business law, and the impact of regulatory and judicial rulings on corporate clients and legal practitioners.
Latest from Business Litigation Blog - Page 5
Credit Suisse and UBS Settle RMBS Claims with National Credit Union Administration
On May 1 and 3, UBS Securities LLC and Credit Suisse Securities USA LLC announced settlements of significant claims brought against them by the National Credit Union Administration (“NCUA”), the federal agency serving as liquidation agent for credit unions that…
$500 Million Suit Against UBS Dismissed on Jurisdictional Grounds
On December 7, New York Supreme Court Justice Eileen Bransten dismissed a $500 million lawsuit against UBS AG (“UBS”) brought by Ace Decade Holdings Limited (“Ace Decade”), a British Virgin Islands company, for lack of personal jurisdiction and forum non…
First Department Reverses Dismissal of RMBS Claims Against Morgan Stanley and Credit Suisse
Earlier last month, the Appellate Division, First Department, reversed a trial court’s dismissal of investment fund Phoenix Light’s $700 million residential mortgage-backed securities (RMBS) fraud suits against Credit Suisse and Morgan Stanley. In a brief opinion, the appellate court…
Agricultural Bank of China Agrees to $215 Million Penalty in Anti-Money Laundering Investigation
On November 4, the New York State Department of Financial Services (“DFS”) and the Agricultural Bank of China agreed to a Consent Order requiring the bank to pay a $215 million penalty and to install an independent monitor to review…
Insurance Coverage for SEC Investigations: Lynn Tilton’s Patriarch Partners Sue for Coverage and Highlight Traps to Avoid
By Joseph Saka
With all the news surrounding the SEC’s headline-grabbing prosecution of Lynn Tilton and her firm, Patriarch Partners LLC, it is easy to miss the insurance coverage element of the case. It is no secret that in recent years, and particularly…
National Credit Union Administration Settles RMBS Claims Against RBS for $1.1 Billion
The National Credit Union Administration (NCUA) and the Royal Bank of Scotland (RBS) have reached a $1.1 billion agreement to settle two separate federal cases that arose out of RBS’s sale of residential mortgage-backed securities (RMBS) to two corporate credit…
No Bankruptcy Automatic Stay for Banks in $7.7B NovaStar MBS Fraud Action
U.S. Southern District Judge Deborah A. Batts shut down underwriter defendants’ attempt to avoid proceeding with discovery in a $7.7 billion mortgage-backed securities fraud action, by arguing that an automatic bankruptcy stay applied to the underwriter defendants in addition to…
National Credit Union Administration Succeeds in RMBS Appeal to Ninth Circuit
The U.S. Court of Appeals for the Ninth Circuit recently reversed a trial court’s dismissal of the National Credit Union Administration’s (NCUA’s) residential mortgage-backed securities (RMBS) fraud claims against Nomura Home Equity Loan Inc. The appellate court held that the…
MassMutual Agrees to Settle $235 Million RMBS Suit Against RBS
Massachusetts Mutual Life Insurance Company (MassMutual) and RBS Securities Inc. (RBS) have reached a confidential agreement to settle MassMutual’s claims that RBS misrepresented the quality of $235 million in residential mortgage-backed securities (RMBS) sold to MassMutual between 2005 and 2007.…