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:US)’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:US) 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).
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