German Bank Brings $546 Million RMBS Action Against Bank of America

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On December 14, 2012, DZ Bank, a German lender based in Frankfurt, filed a summons with notice against Bank of America Corp. in New York Supreme Court related to DZ Bank’s alleged purchase of over $546 million in RMBS. DZ Bank alleges that the offering documents for the securities contained material misrepresentations and omissions regarding the underwriting standards for the mortgage loans underlying the securities, the transfer of those loans to the issuing trusts, the validity of the trusts, and the statistical characteristics of the mortgage loans, including loan-to-value ratios and the percentage of owner-occupied properties. DZ Bank asserts causes of action for common-law fraud, fraudulent inducement, negligent misrepresentation, aiding and abetting fraud, declaratory judgment, rescission, restitution, and mutual mistake. Summons.