Bloomberg News

IKB Sues Bank of America Over Mortgage-Backed Securities

May 15, 2012

IKB Deutsche Industriebank AG (IKB) sued Bank of America Corp. (BAC:US) in New York state court over losses related to more than $200 million in mortgage-backed securities that it purchased.

The Dusseldorf, Germany-based bank contends Bank of America, based in Charlotte, North Carolina, misrepresented the value of separate offerings of $200.3 million and $56.1 million, according to two complaints filed in New York state Supreme Court yesterday.

Bank of America “obtained mortgage loans from the originators and created securities from them,” and sold them to IKB “by means of offering materials which contained knowing material misrepresentations and omissions,” IKB lawyers said in the complaints.

IKB contends it sold the securities at a loss. The suits allege common-law fraud, and seek damages, interest and legal costs.

William Halldin, a Bank of America spokesman, said in an e- mailed message that the company declined to comment on the lawsuits.

The cases are IKB v. Bank of America, 651676/2012 and 651678/2012, New York state Supreme Court, New York County (Manhattan).

To contact the reporters on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net; Chris Dolmetsch in New York at cdolmetsch@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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Companies Mentioned

  • BAC
    (Bank of America Corp)
    • $15.38 USD
    • -0.06
    • -0.39%
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