Judge Sends $825M Cambridge MBS Suit To Mass. Court

Law360, New York (August 23, 2011, 6:37 PM EDT) -- A Massachusetts federal judge on Friday remanded Cambridge Place Investment Management LLP's suit against J.P. Morgan Securities Inc. and 15 other financial companies over $825 million in mortgage-backed securities to Massachusetts state court, citing lack of diversity jurisdiction.

U.S. District Judge Nathaniel M. Gorton said that since the securities purchases at issue in the suit took place through foreign hedge funds and all the defendants were incorporated in Delaware, the case could not be tried in Massachusetts federal court.

The defendants — including units of Morgan...
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