Mortgage-Backed Securities LitigationOctober 15, 2013
Zwerling Schachter represents the General Retirement System of the City of Detroit and the Police and Fire Retirement System of the City of Detroit with respect to securities class action lawsuits pending in the United States District Court for the Southern District of New York: In re IndyMac Mortgage-Backed Sec. Litig., No. 1:09-CV-4583 and New Jersey Carpenters Health Fund v. Residential Capital, LLC, No. 08-CV-8781-HB.
The complaints in both actions allege that the offering documents, pursuant to which certain mortgage-backed securities were sold, contained misrepresentations and omitted to disclose information concerning the underwriting of the mortgage loans serving as collateral for the securities. Soon after issuance of the securities, and as a result of massive increases in borrower delinquency, foreclosure, repossession and bankruptcy, the value of the securities collapsed. The complaints assert claims under the Securities Act of 1933, 15 U.S.C. § 77a, et seq., on behalf of all persons and entities who purchased or otherwise acquired the securities.