Credit Suisse Sued Over Mortgage Securities Losses

Law360, Los Angeles (September 10, 2013, 8:35 PM EDT) -- A group of investment funds on Monday sued Credit Suisse AG and several subsidiaries in New York state court over alleged misrepresentations the bank made in offering documents for $362 million in residential mortgage-backed securities. 

The investment vehicles, most of which are associated with collapsed German bank WestLB AG, claimed in the complaint that Credit Suisse knew the originators of the loans backing the RMBS had abandoned their underwriting guidelines but failed to acknowledge such in offering documents for the certificates. According to the plaintiffs, the...
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