Phoenix Light SF Ltd. v. Bank of New York Mellon

ADDITIONAL CASES Phoenix Light SF DAC and Kleros Preferred Funding v. PLC, Plaintiffs, v. The Bank of New York Mellon, Defendant; 18-CV-1194 OPINION AND ORDER On January 18, 2021, this Court stayed these two cases pending the Second Circuit’s resolution of an appeal in a virtually identical case. See Order, Dkt. 397, No. 14-CV-10104; Dkt. 162, No. 18-CV-1194. In light of the Second Circuit’s decision in Phoenix Light SF DAC v. U.S. Bank Nat’l Ass’n, No. 20-1312, 2021 WL 4515256, at *1 (2d Cir. Oct. 4, 2021) (“U.S. Bank IV”), the Court concludes that Plaintiffs lack prudential standing in either of these cases; both cases are, therefore, dismissed. BACKGROUND These cases were brought as part of a cascade of actions in which trustees of residential mortgage-backed securities trusts (“RMBS Trusts”) were sued in the wake of the 2008 housing market collapse. Plaintiffs are special purpose entities that issued collateralized debt obligations (“CDOs”). Pls. Rule 56.1 Counterstmt., Dkt. 379 at 8.¹ The CDOs were secured by certificates that had been issued by the RMBS Trusts that held residential mortgage loans. Defendant Bank of New York Mellon (“BNYM”), among other banks that Plaintiffs have sued in separate actions, served as trustee for a number of RMBS trusts. Fourth Am. Compl., Dkt. 137