Moody's, Deutsche Blast Billion-Dollar Subprime Suit

Law360, New York (September 1, 2009, 4:49 PM EDT) -- Moody's Investors Service Inc. and Deutsche Bank Securities Inc., as well as subprime lender Novastar Mortgage Inc., have filed fiery motions seeking the dismissal of a putative class action accusing them of misrepresenting risks associated with billions of dollars' worth of mortgage-backed securities offerings.

The lawsuit, filed in June 2008 by the New Jersey Carpenters Health Fund in the U.S. District Court for the Southern District of New York, arises from the alleged role of Novastar; underwriter defendants such as Deutsche Bank, Royal Bank of Scotland...
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