Citi Settles Allstate’s $200M RMBS Suit


On May 28, Allstate Insurance Co. dismissed its lawsuit against Citigroup Inc. and several of its affiliates after reaching a settlement with defendants. The suit related to $200 million of RMBS certificates that Allstate allegedly purchased from Citigroup. Allstate asserted several claims under the federal securities laws and state common law, alleging that Citigroup made material misstatements and omissions concerning the underwriting guidelines used to originate the mortgage loans backing the RMBS at issue, the results of Citigroup’s due diligence, and certain statistical characteristics of the loans, including owner-occupancy and loan-to-value. The settlement came 15 months after the case was remanded to New York state court and 6 months after oral argument on Citigroup’s motion to dismiss. Stipulation.

Topics:  Allstate, Citigroup, Material Misstatements, Mortgages, RMBS, Settlement

Published In: Business Torts Updates, Civil Procedure Updates, Finance & Banking Updates, Securities 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.

© Orrick - Structured Finance Group | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »