Case Caption: In re Policemen’s Annuity & Benefit Fund of the City of Chicago v. Bank of Am., N.A.
Case Number: 1:12-cv-02865-KBF
Court: Southern District of New York
Judge: Honorable Katherine B. Forrest
Plaintiffs: Policemen’s Annuity and Benefit Fund of the City of Chicago, Laborers’ Pension Fund and Health and Welfare Department of the Construction and General Laborers’ District Council of Chicago and Vicinity, Iowa Public Employees’ Retirement System, Arkansas Public Employees’ Retirement System, Vermont Pension Investment Committee, Washington State Investment Board, Arkansas Teacher Retirement System, Public Employees’ Retirement System of Mississippi, City of Tallahassee Retirement System, and Central States, Southeast and Southwest Areas Pension Fund
Defendants: Bank of America, N.A. and U.S. Bank National Association
Overview: In one of the first cases to assert a private right of action on behalf of buyers of mortgage-backed securities (MBS) under the Trust Indenture Act, served as co-lead counsel for a consolidated class action against Bank of America, NA and U.S. Bank, NA (defendants).
The plaintiffs were investors in certificates issued by MBS trusts that were securitized by Washington Mutual (WaMu) and collateralized by mortgages it originated. We alleged that the defendants, who were trustees of the WaMu MBS trusts, breached both their contractual obligations to plaintiffs and provisions of the Trust Indenture Act governing their obligations to investors. Specifically, we alleged that defendants failed to take required action despite knowing that WaMu had breached certain representations and warranties regarding the quality of mortgages transferred to the trusts. Defendants’ failures caused substantial losses to the MBS trusts and resulting losses to the class. After extensive motion practice and discovery, the parties resolved the matter for $69 million.