BAS Withheld Poor Credit Details, Investors Say

Law360, New York (October 24, 2008, 12:00 AM EDT) -- Banc of America Securities LLC intentionally concealed negative details about the quality of asset-backed securities it underwrote a decade ago, a group of institutional investors told a jury on Tuesday in support of its bid for $150 million in damages.

In opening statements in the U.S. District Court in Manhattan, the plaintiffs argued that BAS’ memoranda on the offering intentionally used “half-truths” to describe the financial health of the furniture store Heilig-Meyers, which used its retail sales to fund a trust that backed the offering....
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