Judge Nixes Fund Manager's Suit Against Ameriquest

Law360, New York (September 30, 2009, 3:49 PM EDT) -- A federal judge has dismissed fund manager Ellington Management Group LLC's suit accusing mortgage lender Ameriquest Mortgage Co. of making misstatements about mortgage-backed securities.

Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York on Tuesday that Ellington, which bought $354 million mortgage-backed securities from Ameriquest in 2005 and 2006, hadn't pleaded that Ameriquest acted with scienter.

Ellington sued Ameriquest and several affiliates in January, alleging that Ameriquest made misstatements about the riskiness of mortgage-backed securities in prospectuses and other...
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