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Archive for October 13th, 2008

Magnified by the most recent credit crisis, subprime mortgage litigation continues to be a hot topic among those following developments in class actions.  Peter Page of the National Law Journal authored an interesting article, published today, discussing the most recent wave of lawsuits stemming from the ugly recent turn in the subprime mortgage crisis.  The article focuses on recent securities fraud class action filings involving claims of failure to disclose subprime investments by mortgage companies, banks, and others.

Securities fraud cases are only a part of the wave of class action litigation that has been spawned by the subprime mortgage fiasco.  Subprime-related issues have formed the basis for a wide range of class actions brought on behalf of a wide range of plaintiffs and based on a wide variety of causes of action, with varying success.  The many types of subprime-related class actions include:

  • Consumer protection actions involving claims for predatory lending;
  • Class actions claiming racial discrimination in mortgage lending;
  • Class actions by subprime loan borrowers under the Truth in Lending Act (TILA);
  • Securities fraud class actions claiming failure to disclose facts about subprime investments;
  • ERISA Class Actions alleging improper subprime investments on behalf of the participants of a pension or retirement plan; and
  • Shareholder derivative lawsuits alleging nondisclosure of and mismanagement involving subprime investments.

The most recent CADS Report, the newsletter of the ABA’s class action and derivative suits committee, has a nice collection of articles on developments many of these areas.  The Newsletter is available only to ABA CADS members (I won’t comment in detail here on the perhaps fitting choice of acronyms), but non-members can get a preview here, along with information on how to join.

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