Capital One, Chevy Chase, and Credit Suisse Sued over $168.6 Million in RMBS

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On March 8, 2012, a group of plaintiffs led by German bank Landesbank Baden-Wuerttemberg filed a summons with notice in New York state court against Capital One Financial Corp., Chevy Chase Funding LLC, and Credit Suisse Securities (USA) LLC.  The plaintiffs allege that the defendants made material misrepresentations and omissions in the offering materials for $168.6 million worth of RMBS allegedly purchased by plaintiffs.  Specifically, plaintiffs claim that the materials contained misrepresentations concerning the legal validity of the assignments of the underlying mortgage loans to trusts and the legal validity of the trusts to receive interest and principal payments on the loans.  Plaintiffs assert claims for common-law fraud, fraudulent inducement, negligent misrepresentation, aiding and abetting fraud, declaratory judgment, rescission, restitution, and mutual mistake.  Plaintiffs are seeking at least $168.6 million in damages plus accrued interest and punitive damages.  Summons.

Published In: Business Torts Updates, Civil Remedies Updates, Finance & Banking Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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