$200M Mortgages Ltd. Fraud Suit Survives

Law360, New York (April 1, 2011, 2:11 PM EDT) -- A federal judge in Arizona refused Thursday to dismiss a putative class action alleging the management of bankrupt mortgage lender Mortgages Ltd. and its collapsed business partner Radical Bunny LLC perpetuated a $200 million securities fraud.

Judge Mary H. Murguia of the U.S. District Court for the District of Arizona rejected claims that the 120-page complaint was unspecific and disordered, finding the plaintiffs adequately detailed the alleged scheme to funnel money into Mortgages and conceal its financial woes from investors.

The complaint also targets the two...
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