Deutsche Bank AG won dismissal of two lawsuits in which investors in residential mortgage-backed securities accused the bank of selling them securitized loans it internally disparaged as “crap.”
Deutsche Bank Wins Dismissal of Two Mortgage Bond Suits That Alleged Fraud
(Bloomberg)
Deutsche Bank AG won dismissal of two lawsuits in which investors in residential mortgage-backed securities accused the bank of selling them securitized loans it internally disparaged as “crap.”
U.S. District Judge Jed Rakoff in Manhattan, in an order filed yesterday, dismissed two separate lawsuits by Brussels- based Dexia SA and Teachers Insurance and Annuity Association of America. The investors had “in certain key respects” failed to provide sufficient particular facts to support their fraud allegations, the judge said.
Rakoff said he would issue a more specific written opinion at a later date. The investors could amend their claims in so far as these relied on loans sponsored by Deutsche Bank Structured Products, the judge said.
Gerald Silk, a lawyer representing the investors in both cases, didn’t immediately return a call after regular business hours yesterday seeking comment on the ruling.
The cases are Dexia v. Deutsche Bank, 11-05672, and Teachers Insurance and Annuity Association of America v. Deutsche Bank, 11-06141, U.S. District Court, Southern District of New York (Manhattan.)
To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net.
To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.
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