Susman Godfrey LLP Wins Landmark Trial Over $1 Billion of Mortgage-Backed
NEW YORK, Feb. 6, 2013
NEW YORK, Feb. 6, 2013 /PRNewswire/ -- Federal Judge Jed S. Rakoff in
Manhattan ruled yesterday that Flagstar Bank has to pay bond insurer Assured
Guaranty Ltd. approximately $90 million plus contractual interest and
attorneys' fees and costs in a case involving breach of contract by the
originator and sponsor of residential mortgage-backed securities. This amount
was substantially all of the damages sought by Assured Guaranty in the first
case of its kind to go to trial.
"We are thrilled with Judge Rakoff's landmark ruling in favor of our client
Assured Guaranty," said Jacob W. Buchdahl, a partner in the New York office of
Susman Godfrey LLP and Assured Guaranty lead counsel. "This ruling is a
significant milestone in forcing the banks to honor the contractual
commitments they made and have long sought to avoid. Susman Godfrey was
honored by the trust Assured Guaranty placed in us to handle this important
case at trial."
Assured Guaranty filed suit in 2011 against Flagstar Bank in which it claimed
the loans underlying nearly $1 billion in mortgage-backed securities did not
comply with the representations and warranties made by Flagstar Bank. Susman
Godfrey's legal team established an important precedent both in the use of
loan sampling and a damages model based on Flagstar Bank's obligation to
Assured Guaranty was represented at trial by Jacob W. Buchdahl and Arun
Subramanian of Susman Godfrey's New York office, and Warren Burns and Joseph
Portera of the firm's Dallas office.
The case is Assured Guaranty Municipal Corp v Flagstar Bank, FSB in U.S.
District Court for the Southern District of New York, No. 11-2375.
About Susman Godfrey
For more than 30 years, Susman Godfrey has focused its nationally-recognized
practice on just one thing: high-stakes commercial litigation. It is one of
the nation's leading litigation law firms with offices in Houston, Dallas,
Seattle, Los Angeles and New York. www.susmangodfrey.com
SOURCE Susman Godfrey L.L.P.
Contact: Jacob Buchdahl, +1-212-336-8342, email@example.com,
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