TCW Loses Bid To Nix $128M MBS Fraud Suit In NY

Law360, New York (September 13, 2013, 9:11 PM EDT) -- A New York state judge on Thursday refused to dismiss a $128 million lawsuit alleging that TCW Asset Management Company lied to investors about the underlying value of a mortgage-backed collateralized debt obligation called Dutch Hill Funding II Ltd.

Judge Shirley Werner Kornreich ruled that the two Cayman Islands-incorporated plaintiffs, Basis Pac Rim Opportunity Fund and Basis Yield Alpha Fund, can proceed with their lawsuit against TCW alleging the firm fraudulenty induced them to buy the now-defunct Dutch Hill for $28.1 million while knowing that the...
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