Bloomberg News

JPMorgan Among Banks Sued For $1.8 Billion Over Mortgages

May 22, 2012

JPMorgan Chase & Co. (JPM:US) and Goldman Sachs Group Inc. (GS:US) 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: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).

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


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Companies Mentioned

  • JPM
    (JPMorgan Chase & Co)
    • $59.77 USD
    • -0.47
    • -0.79%
  • GS
    (Goldman Sachs Group Inc/The)
    • $180.7 USD
    • -2.87
    • -1.59%
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