JPMorgan Among Banks Sued For $1.8 Billion Over Mortgages

JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) are among banks that were sued for $1.8 billion in New York over the sale of mortgage-backed securities.

The banks made misrepresentations about the loans backing the securities, according to a summons filed today in New York State Supreme Court. Morgan Stanley, Credit Suisse Group AG (CSGN), Royal Bank of Scotland Group Plc (RBS) and Bank of America Corp. (BAC)’s Merrill Lynch unit are also named as defendants.

The plaintiffs, which include Phoenix Light SF Ltd. and Blue Heron Funding II Ltd., are seeking a total of $1.8 billion in damages, according to the court filing.

Michael DuVally, a spokesman for Goldman Sachs, Steven Vames, a Credit Suisse spokesman, Bank of America spokesman Lawrence Grayson, and RBS spokesman Ed Canaday declined to comment. Representatives of JPMorgan and Morgan Stanley (MS) didn’t respond to e-mails seeking comment.

The case is Phoenix Light SF Ltd. v. J.P. Morgan Securities LLC, 651755-2012, New York State Supreme Court (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net