Residential, Underwriters Still Face MBS Class Claims

Law360, New York (April 6, 2010, 5:04 PM EDT) -- Narrowing a putative class action over $37 billion in Residential Capital LLC mortgage-backed securities offerings, a federal judge has limited the suit to four of the 59 offerings at issue and upheld core allegations that Residential and underwriters, including Goldman Sachs & Co. and RBS Securities Inc., misled investors about the risks of the investments.

On Wednesday, Judge Harold Baer Jr. of the U.S. District Court for the Southern District of New York ruled that the plaintiffs lack standing to pursue claims with regard to 55...
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