Investors Seek Right To Sue BofA Over $1.1B MBS Flub

Law360, New York (June 6, 2012, 6:24 PM EDT) -- An investor group asked a New York state appeals court Wednesday for permission to challenge how Bank of America Corp. handled $1.1 billion in mortgage-backed securities, arguing that the securities' trustee, the Bank of New York Mellon Corp., was asleep at the wheel.

David J. Grais of Grais & Ellsworth LLP, who represents Walnut Place LLC, the investor group backed by hedge fund Baupost Group LLC, told a five-judge panel of a state appeals court in Manhattan that Bank of America's Countrywide subsidiaries misrepresented the underwriting...
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