The gravamen of the corrected class action complaint (the “Complaint”) isthat defendants failed to take certain actions required by the PSAs, which caused adecline in the value of plaintiff’s MBS
Defendants have moved to dismiss the Complaint. The motion was fullysubmitted as of July 20, 2012. The Court heard oral argument on the motion on August 6, 2012.and thus damaged plaintiff.For the reasons that follow, defendants’ motion to dismiss is GRANTED INPART and DENIED IN PART.I.
The PartiesPlaintiff PABF, a state governmental pension fund organized under Illinoislaw, provides retirement benefits to its members and their beneficiaries and, in thatcapacity, “relies heavily upon the performance of its investments.” (Compl. ¶ 13,ECF No. 24.) PABF purchased certificates in five of the 41 trusts at issue in thisaction (the five purchased trusts, the “Trusts”) (id. ¶ 1, Ex. B), but no longer holdsan interest in any of the Trusts (Oral Arg. Tr. (“Tr.) 69:22-70:1, Aug. 6, 2012, ECFNo. 40).
The Court uses the terms “MBS,” “certificates,” and “securities” interchangeably throughout thisOpinion.
The facts are taken from the Complaint and the documents attached thereto or incorporated byreference therein, and are construed in the light most favorable to plaintiff. See Bell Atl. Corp. v.Twombly
, 550 U.S. 544, 555 (2007); Chambers v. Time Warner, Inc., 282 F.3d 147, 153 (2d Cir.2002); In re Citigroup ERISA Litig., 662 F.3d 128, 135 (2d Cir. 2011) (on a motion to dismiss, a courtmay consider “documents incorporated by reference in the complaint and documents upon which thecomplaint ‘relies heavily’”).
Case 1:12-cv-02865-KBF Document 46 Filed 12/07/12 Page 2 of 44