JPMorgan Wins Dismissal of MBIA Suit Over SecuritiesEdvard Pettersson
JPMorgan Chase & Co. won dismissal of MBIA Inc.’s lawsuit over a $1.16 billion pool of mortgages it agreed to insure, with the judge saying the bond insurer can revise and refile the case.
There was no evidence MBIA relied on an allegedly altered due diligence report for the mortgages that was provided by Bear Stearns as an underwriter, said New York Supreme Court Justice Alan Scheinkman in White Plains.
The case is one of many still pending against banks over alleged misrepresentations in the packaging and sale of mortgage-backed securities that helped bring on the 2008 financial crisis. JPMorgan, which acquired Bear Stearns in 2008, agreed in November to pay $13 billion to settle Justice Department allegations it defrauded investors in the securities.
Richard Werder, a lawyer for MBIA, didn’t immediately respond to an e-mail after regular business hours today seeking comment on yesterday’s ruling.
The case is MBIA Insurance Corp. v. J.P. Morgan Securities LLC, 64676/2012, Supreme Court of New York, County of Westchester (White Plains).