BofA Targeted By Investors Over $261M In MBS

Law360, New York (November 14, 2012, 4:15 PM EST) -- Bank of America Corp. and several affiliates were sued in New York state court Tuesday over accusations it misled investors about the quality of loans bundled into $261 million worth of residential mortgage-backed securities sold in 2006 and 2007, causing $122 million in investor losses.

The plaintiffs, which include Phoenix Light SF Ltd., Silver Elms CDO PLC and Blue Heron Funding II Ltd., said in a summons that the defendants made several misrepresentations and omissions regarding the securitization and sale of the mortgage-backed securities.

The offering...
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