May 06, 2013

In a ruling in Policemen's Annuity and Benefit Fund Of The City Of Chicago v. Bank of America, NA, issued on May 6, 2013, U.S. District Court Judge for the Southern District of New York, Katherine B. Forrest, denied defendants US Bank and Bank of Americas’ motion to dismiss the class action complaint.  Judge Forrest upheld claims that those Trustees of 19 WaMu MBS violated the Trust Indenture Act and the respective Pooling and Servicing Agreements.  Significantly, she found that Plaintiffs had sufficiently pled actual knowledge of the alleged breaches of representations and warranties in the underlying loans based on the exception reports that they prepared as well as ratings downgrades and the pervasiveness of WaMu’s deviation from its underwriting guidelines, as revealed in public disclosures and Congressional reports. 

Cohen Milstein represent Iowa PERS, Arkansas and Chicago Laborers in this litigation and Scott & Scott represent Chicago Police.

Opinion & Order - May 6, 2013 [PDF]