Thornburg's $35M MBS Underpayment Suit Will Proceed

Law360, New York (March 29, 2012, 5:14 PM EDT) -- A Maryland federal judge said March 23 that the Chapter 11 trustee for Thornburg Mortgage Inc. can proceed with a $35 million suit alleging RBC Capital Markets LLC underpaid when it seized and sold Thornburg-owned mortgage-backed securities.

U.S. District Judge Benson Everett Legg gave the green light to trustee Joel Sher's breach of contract claims over the amount Thornburg — now called TMST Inc. — was paid after it failed to satisfy the securities firm's margin call and RBC seized the securities. The judge killed claims,...
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