Federal Home Loan Bank of Chicago: Washington Action
Superior Court of King County, Washington
Case No. 10-2-36526-5 SEA
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 $100 million of mortgage-backed securities issued or underwritten by the defendants based on offering documents that misrepresented the risks of the Washington Mutual and Long Beach securities at issue in the case and the quality of the mortgage loans backing those securities.
The Federal Home Loan Bank of Chicago’s 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 the Washington State Securities Act, the federal securities laws, and negligent misrepresentation. In addition to rescission and/or damages, Plaintiff seeks interest, attorneys’ fees and costs.
On June 17, 2011, King County Washington Superior Court Judge Catherine Shaffer denied in its entirety motions to dismiss filed by the following defendants: Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co, RBS Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Long Beach Securities Corp, WAMU Asset Acceptance Corp, WAMU Capital Corp.
This action is in active discovery.