A California federal judge gave final approval Friday to a $500 million settlement of three class actions challenging Bank of America Corp.-owned Countrywide Financial Corp.’s underwriting standards for mortgage-backed securities, including $85 million in fees to the plaintiffs’ attorneys.
A New York federal judge on Friday held that the trustee liquidating Bernard Madoff’s investment firm’s estate may only assert certain claims against feeder funds on behalf of the firm’s customers if the claims are validly assigned to him.
Three General Electric Co. units will pay $18 million to end part of their involvement in multidistrict litigation accusing them and other financial institutions of colluding to rig bids in the municipal bond derivatives market, according to a filing in New York federal court Friday.
Goldman Sachs Group Inc. must face allegations it lied to HSH Nordbank AG about the quality of the loans in $110 million worth of mortgage-backed securities, a New York state judge has ruled, finding that it hadn't waited too long to sue under German law.
The Second Circuit rejected on Friday a bid by Sapere Wealth Management LLC to overturn a ruling that MF Global Inc. commodity customers could not jump ahead of other creditors in the MF Global Holdings Ltd. Chapter 11 proceedings.
A Texas bankruptcy judge said Thursday that TMT Group could seek the release of three of its ships seized by bank creditors around the world, on the condition that it finalize plans to hire commercial and technical fleet managers to take control of the boats.
A D.C. federal judge approved a $153 million class action settlement Friday for investors who accused housing giant Fannie Mae and accounting firm KPMG LLP of putting out misleading financial reports, the largest such settlement in the D.C. Circuit since 1996.
PNC Financial Services Group Inc. on Friday announced an $89 million settlement with Freddie Mac, making it the latest bank and the second within a week to bring to a close mortgage repurchase claims with the government-controlled firm.
Investors can't get any discovery yet for their $450 million mortgage-backed securities lawsuit against Goldman Sachs Group Inc., a New York state judge ruled during a hearing Thursday, saying he first needed a better idea of if he'd dismiss it.
Bank of America Corp. agreed Wednesday to pay $20 million to settle part of a multidistrict litigation accusing it and other financial institutions of bid-rigging in the municipal bond derivatives market.
The New Jersey federal judge overseeing multidistrict overtime litigation against Morgan Stanley Smith Barney LLC tossed all but one of the claims that the company took illegal deductions from financial advisers' wages, ruling Wednesday that the claims weren't adequately alleged.
The Third Circuit refused Wednesday to hear a petition by First Data Corp. customers who claim they were overcharged for installing ATMs in their stores, saying in a precedential ruling that a mistake by class counsel that led to the document's late filing does not constitute excusable neglect.
PHH Mortgage Corp. will pay $6.25 million to more than 2,000 borrowers and the state of New Jersey to settle allegations that the residential mortgage servicer misled homeowners seeking assistance to keep up with their mortgage payments or avoid foreclosure, Attorney General John J. Hoffman announced Wednesday.
A Minnesota federal judge on Monday granted the Corporate Commission of the Mille Lacs Band of Ojibwe Indians’ motion for entry of final judgment against Money Centers America Inc. in a suit over outstanding advances for casino patrons, ordering MCA and affiliates to pay more than $5.6 million.
The plan trustee for defunct Taylor Bean & Whitaker Mortgage Corp. asked a Florida bankruptcy judge on Monday to approve a settlement with the Government National Mortgage Association that would give Ginnie Mae a $610 million allowed claim for its disputed $5.2 billion claim.
The Fifth Circuit on Monday sent back to district court a suit accusing a half-dozen credit card companies of charging consumers fees for services they didn’t want or need, finding that the suit itself, originally brought by the state of Mississippi, is not subject to federal jurisdiction.
A New York bankruptcy judge on Tuesday granted Residential Capital LLC’s motion for approval of a settlement agreement between its debtors, former parent Ally Financial Inc. and unsecured creditors, which allows for $1.2 billion in FHFA claims against Residential Funding Company LLC.
Florida's First District Court of Appeal in a split decision Wednesday reversed a lower court's order enjoining a couple — who years earlier had lost in a bank's foreclosure suit — from filing any further pleadings or motions except through counsel, because the lower court did not first provide notice and an opportunity to respond.
A Texas appeals court on Wednesday revived a Holiday Inn franchise’s suit against Association Casualty Insurance Co. for allegedly underpaying a claim for flood damage, finding the franchise hadn't divested its breach of contract claim in a foreclosure.
A New York bankruptcy judge on Tuesday approved a deal between bankrupt Residential Capital LLC and the National Credit Union Administration Board that will see NCUAB's general unsecured claims slashed from over $290 million to $78 million.
In light of the proposed e-discovery amendments to the Federal Rules of Civil Procedure, businesses need to set themselves up to efficiently respond to discovery and requests for information from their counsel by implementing and following document-control policies as part of normal business practices. The failure to do so will eventually consume vast amounts of employee time, say Steven Cvitanovic and Colin Murphy of Haight Brown & Bonesteel LLP.
The Second Circuit’s opinion in Halebian v. Berv — a significant departure from its own oft-cited Joy v. North decision — highlights that a derivative plaintiff’s entitlement to discovery, if any, is inversely proportional to the showing made by a special litigation committee in support of its motion to terminate, says Donald Corbett of Lowenstein Sandler LLP.
Condominium developers are turning to the buyer-financed model to fund the pre-construction and construction phases of their projects. But a recent Florida Supreme Court ruling complicates things for realtors and lawyers who do not identify and inform their buyers of the risks of this development model, says Andrew Hall of Hall Lamb and Hall PA.
Any bank that interacts with a municipal entity should review the new municipal adviser rules to ensure that its activities are in compliance. Advice to a municipal entity or obligated person, for example, about the purchase of guaranteed investment contracts, municipal derivatives or investment strategies, could cause a bank to be deemed a municipal adviser, say attorneys with Goodwin Procter LLP.
A Georgia federal court recently ruled in Metro Brokers Inc. v. Transportation Insurance Co. that an all-risk insurance policy did not provide coverage for online fraudulent withdrawals from the company’s bank account. This decision offers guidance as to how a court may treat a policyholder’s claim under a traditional all-risk policy and the effect of broad computer fraud exclusions, says James Kitces at Robins Kaplan Miller & Ciresi LLP.
While capital call facilities for true open-end funds have been relatively rare, the opportunity is ripe for new market entrants. A traditional facility would not be feasible for an open-end fund, but a few structural tweaks should do the trick, say attorneys with Mayer Brown LLP.
Two important events this year make clear that California's anti-deficiency statutes not only protect borrowers in nearly all circumstances when dealing with a residential loan but also trump any separate agreement the lender may have with a borrower for the payment of any deficiency following either a foreclosure or a short sale, say Sylvia Arostegui and Eunice Majam-Simpson of Nossaman LLP.
Following the financial crisis of 2008, regulations were put in place to enact transparency and protect individual investors in complex financial markets. Although this has left many to believe that financial instruments have become more transparent and that there will likely be less securities litigation going forward, the reality is likely to be more complex than that, says Ilan Guedj of ARPC.
Even if the European economic recovery remains constrained, the global real asset rotation and navigation of the commercial real estate debt gap should continue to propel real estate investment up the risk curve in 2014. The growing participation of larger institutional players also signals larger deals in core markets, says Eric Rosedale, co-chairman of Dentons real estate group in Europe.
The New York State Department of Financial Services is “requiring” about 200 banks “to answer questions in real time on Dec. 12 to assess their cybersecurity policies and processes.” But the DFS will not necessarily learn anything new from the Web-based, real-time surveys, nor is that the stated intent, say Ronald Sarachan and Zoe Wilhelm of Drinker Biddle & Reath LLP.