U.S. judge expands classes in lawsuits over $34 billion mortgage debt
Source: Reuters
U.S. judge expands classes in lawsuits over $34 billion mortgage debt
BY JONATHAN STEMPEL
NEW YORK Fri Dec 27, 2013 5:42pm EST
(Reuters) - A Manhattan federal judge on Friday expanded the scope of class-action litigation accusing banks of concealing the risks of more than $34 billion of mortgage-backed securities prior to the financial crisis.
U.S. District Judge Harold Baer said investors may now pursue claims as a group against Citigroup Inc (C.N), Goldman Sachs Group Inc (GS.N) and UBS AG (UBSN.VX) over an estimated $11.9 billion of securities.
Those offerings were linked to the RALI Mortgage Asset-Backed Pass-Through Certificates, which were issued in 2006 and 2007 by the former Residential Capital LLC. One offering was the subject of a partial $100 million settlement this year.
Baer also said investors may pursue a similar case against Royal Bank of Scotland Group Plc (RBS.L) over an estimated $22.5 billion of securities in 12 offerings linked to the Harborview Mortgage Loan Trusts, which were also created in 2006 and 2007.
[font size=1]
-snip-[/font]
Read more:
http://www.reuters.com/article/2013/12/27/us-mortgage-lawsuit-classaction-idUSBRE9BQ0JC20131227