If there were lingering doubts that the U.S. Court of Appeals for the Second Circuit threw up a big obstacle for securities plaintiffs lawyers one year ago in Fait v. Regions Financial Corp., 655 F.3d 105, Southern District Judge Deborah Batts (See Profile) helped put them to rest on Aug. 10.
In a terse six-page order, Batts threw out a proposed class action claiming that Deutsche Bank AG, its individual officers and its underwriters misstated the bank’s losses from mortgage-backed securities even after the credit bubble popped in 2008. Batts had previously allowed the case to go forward, but Deutsche Bank’s lawyers at Cahill Gordon & Reindel convinced the judge to reconsider in light of the Second Circuit’s holding in Fait that only knowingly false loss valuations are actionable under the Securities Act of 1933 (NYLJ, Aug. 26, 2011).
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
