Munger, Tolles & Olson lawyers won a victory for client Bank of America Corp. (BofA) on Feb. 13, 2014, when a New York Supreme Court judge rejected with prejudice a claim by investors that BofA should be required to buy back a pool of mortgage-backed securities worth $1.75 billion, and instead limited US Bank to pursuing loan by loan relief on a much smaller universe of 495 loans.
The ruling marks the second time that Judge Eileen Bransten rejected this broad breach of contract claim by investors, made through the securities’ trustee U.S. Bank, alleging that misrepresentations by BofA and its Countrywide affiliates “pervaded” the thousands of loans underlying the MBS in the case.
The litigation stems from the sale of mortgage loans that were originated by Countrywide Home Loans and then securitized, for which U.S. Bank serves as trustee. BofA bought Countrywide in 2008, at the height of the financial crisis. The case is US Bank v. Countrywide et al., case number 652388-2011, in N.Y. Supreme Court.
The Munger Tolles team representing BofA includes Marc T.G. Dworsky, Richard St. John, Kathleen M. McDowell, Michael J. O’Sullivan, Kenneth M. Trujillo-Jamison and Jenny H. Hong.