Private Label Mortgage-Backed Securities
Keller Rohrback L.L.P. is investigating claims relating to private label mortgage-backed securities (“PLMBS”) and investment instruments related to PLMBS, such as credit default swaps (“CDS”) and collateralized debt obligations (“CDO”), that were issued and sold by financial institutions to investors based on misrepresentations and omissions in the offering documents. Our investigation has revealed that the offering documents used to sell PLMBS contained numerous untrue, incomplete, and inaccurate statements regarding the credit quality of the mortgages backing the securities, and the compliance with underwriting standards.
Keller Rohrback has extensive experience litigating cases relating to mortgage-backed securities, including:
• Representing the Federal Home Loan Banks of Boston, Chicago, and Indianapolis (“FHLBs”) in litigation against dozens of issuers, underwriters, and sponsors of private label mortgage-backed securities (“PLMBS”). The FHLB complaints were filed in October 2010 and April 2011 in California, Illinois, Indiana, Massachusetts, and Washington. The complaints name over 120 defendants and involve over 200 securities with an original face value of $13 billion. To date, all rulings on Defendants’ motions to dismiss have been favorable and the cases have either settled or are in active discovery. We have recovered substantial sums for the FHLBs, and we are continuing to aggressively press our claims against the remaining defendants.
• Representing objectors to the $8.5 billion Bank of New York settlement. Keller Rohrback was a member of the three firm Steering Committee objecting to the $8.5 billion settlement of Countrywide’s defective mortgage loan put-back liability for 530 Countrywide mortgage-backed security trusts. The firm served a lead role in the eight week long bench trial before Justice Kapnick in state court in New York.
• Representing a class of fiduciaries of retirement plans that invested in State Street bond funds that were marketed as low-risk investments, but were in fact highly leveraged and overexposed to mortgage-backed securities related investments. Keller Rohrback recovered in excess of $90 million for the class.