Thornburg's $94M Barclays Suit Gets Green Light

Law360, New York (September 12, 2011, 8:17 PM EDT) -- A Maryland federal judge ruled Wednesday that the trustee for bankrupt Thornburg Mortgage Inc. can continue with a $94 million suit against Barclays Capital Inc. for allegedly making unfair margin calls that undervalued mortgage-backed securities and selling assets that helped drive the mortgage lender into bankruptcy.

U.S. District Judge Ellen Liptor Hollander rejected an appeal from Barclays to dismiss a suit filed by Thornburg, renamed TMST Inc., claiming the bank breached a contract with the mortgage lender when it undervalued mortgage-backed securities being used as collateral in order to make higher margin calls....
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Case Information

Case Title

TMST, Inc.


Case Number

1:09-bk-17787

Court

Maryland

Nature of Suit

Date Filed

May 1, 2009


Case Title

Sher v. Barclays Capital Inc.


Case Number

1:11-cv-01982

Court

Maryland

Nature of Suit

Bankruptcy Withdrawl

Judge

Ellen L. Hollander

Date Filed

July 18, 2011

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