Citigroup, Goldman, UBS Sued Over Mortgage-Backed Bonds
The three banks made “material misrepresentations” about the loans backing the securities and about the transfer of the loans into trusts, according to filings today in New York State Supreme Court.
IKB Deutsche Industriebank AG (IKB) sued Citigroup over losses on $137.4 million in mortgage securities and also sued Goldman Sachs over $73.2 million in securities. IKB, a German lender, said it sold the securities at a loss.
UBS, based in Zurich, was sued by Sealink Funding Ltd. over $158.1 million in bonds. The securities at issue in the UBS case are either held by Sealink or were previously sold at a loss, according to court papers.
Claims against Citigroup, Goldman Sachs and UBS include fraud and negligent misrepresentation, according to the filings.
Danielle Romero-Apsilos, a spokeswoman for New York-based Citigroup; Michael DuVally, a spokesman for New York-based Goldman Sachs; and UBS spokeswoman Karina Byrne declined to comment on the filings.
The cases are IKB International SA in Liquidation v. Citigroup Inc., 653100-2012; IKB International SA in Liquidation v. Goldman Sachs Group Inc., 653101-2012; and Sealink Funding Ltd. v. UBS AG, 653102-2012, New York State Supreme Court (Manhattan).
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