Federal Home Loan Bank of Chicago: California Action
Superior Court of Los Angeles County, California
Case No. LC091499
Keller Rohrback represents the Federal Home Loan Bank of Chicago in Federal Home Loan Bank of Chicago v. Banc of America Securities LLC, et al., which was filed on October 15, 2010. The Federal Home Loan Bank of Chicago seeks, among other remedies, rescission of over $880 million of mortgage-backed securities issued or underwritten by the defendants based on offering documents that misrepresented the risks of the securities and the quality of the mortgage loans backing the securities.
The Federal Home Loan Bank complaint is based on Keller Rohrback’s extensive investigation of loan origination and mortgage-backed securitization practices, rating agency practices, and a detailed review and analysis of loan characteristics and performance. Plaintiff brings claims for violations of state blue sky laws, the federal securities laws, the California Corporations Code, and negligent misrepresentation. In addition to rescission and/or damages, Plaintiff seeks interest, attorneys’ fees,and costs.
On June 26, 2012, Los Angeles County Superior Court Judge Anthony J. Mohr overruled the Defendants’ joint demurrer to the First Amended Complaint on the basis of the statute of limitations.
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