Wells Fargo faces another Investor lawsuit over defective mortgage securities

Livinglies's Weblog

By the Lending Lies Team

Too Big to Fail behemoth Wells Fargo faces another lawsuit over faulty residential mortgage-backed securities.  As investors become aware of the fraudulent securities purchased, more lawsuits are sure to be ignited.

According to a Reuters article by Jonathan Stempel, U.S. District Judge Katherine Polk Failla in Manhattan said on Thursday that Wells Fargo must face litigation seeking to hold it responsible for billions of dollars of claimed investor losses.  Judge Failla is the same judge that ruled last week in Costa v. Deutsche Bank that the New York six-year statute of limitations applied.  It appears New York has a judge who applies the law as written.

The plaintiffs in this settlement include BlackRock, Pacific Investment Management, Prudential Financial and others.

From the article:

Failla’s 80-page decision covers five lawsuits, which comprise one of the largest remaining pieces of U.S. litigation seeking to hold banks liable for…

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