NY Court Shoots Down Investors' $1.1B BofA MBS Suit

Law360, New York (June 28, 2012, 5:00 PM EDT) -- A New York state appeals court on Thursday rejected an investor group's lawsuit over how Bank of America Corp. handled $1.06 billion in mortgage-backed securities, making it harder for them to block a proposed $8.5 billion BofA settlement at issue in another suit.

A no-action clause in the pooling and servicing agreement governing the investors' securities meant that the investors couldn't bypass the securities' trustee, the Bank of New York Mellon Corp, a unanimous five-judge appeals panel in Manhattan ruled. Only the trustee, not the investors,...
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