Investors Ask 2nd Circ. For Class Cert. In $7B MBS Cases

Law360, New York (February 27, 2012, 7:51 PM ET) -- Investors in about $7 billion worth of mortgage-backed securities asked the Second Circuit on Monday to make two cases against Royal Bank of Scotland Group PLC and other defendants class actions, saying a district judge applied a too-rigid legal standard in denying that request.

Institutional investors say RBS, Goldman Sachs & Co., UBS Securities LLC, Residential Capital LLC and others lied about the underwriting standards of loans bundled into several MBS offerings, leading to losses when those MBS ratings' were downgraded from AAA to junk bond...
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