Residential Mortgage-Backed Securities Litigation
Status: Ongoing Case
In the wake of the financial crisis, Labaton Sucharow pursued creative and winning direct action litigation strategies on behalf of clients left with toxic residential mortgage-backed securities (RMBS)—claims fraught with challenges. For example, we pleaded state and common law claims that were largely ignored by other firms. Additionally, to avoid the risk of expiring statutes of limitations, the Firm expedited our forensic analysis of relevant securities and negotiated with defendants to secure favorable tolling agreements for many clients.
Labaton Sucharow, a pioneer in this field of litigation, ultimately prosecuted more than 70 direct actions on behalf of European and Asian banking institutions, insurance companies, a special-purpose vehicle, a mutual fund company, and a state pension fund. The Firm’s efforts in these matters resulted in obtaining hundreds of millions of dollars in total recoveries for investors in these largely worthless securities.