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Subprime and Credit Crisis Related Securities Class Action Lawsuits to April 2013

Subprime and Credit Crisis Related Securities Class Action Lawsuits to April 2013

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The D & O Diary
Subprime and Credit Crisis-Related LawsuitsSettlements, Dismissals and Denials
 Last Updated:
April 30, 2013
I. Subprime and Credit Crisis-Related Securities Class Action Lawsuits
Table I:
Securities Class Action SettlementsCompanyDateLinkAmountD&O Diary PostWSB Financial Group
10/14/08Here$4.65 mmHere
Luminent Mortgage Capital
12/10/08Here$8 mmHere
Merrill Lynch (Note 1)
1/16/09Here$475 mmHere
Coast Financial Holdings
2/17/09Here$6.439 mm
Beazer Homes
5/5/09Here$30.5 mmHere
RAIT Financial Trust
5/26/09Here$32 mmHere
American Home MortgageInvestment Corporation (Note2)
7/7/09Here$37.25 mmHere
Accredited Home Lenders
7/15/09Here$22 mmHere
Merrill Lynch Bond Action
8/21/09Here$150 mmHere
Hovnanian Enterprises
9/11/09Here$4 mm
MoneyGram Corporation
2/25/10Here$80 mmHere
General Growth Properties
3/10/2010Here$15.5 mm
The Charles Schwab Corp.
4/20/2010Here$235 mm (3)(
 Please Refer to Note 5
Countrywide Financial
5/7/10Here$624 mm (4)(7)Here
The PMI Group
7/13/2010Here$31.25 mmHere
New Century Financial Corp.
7/30/10Here$124.827 mmHere
8/4/10Here$2.35 mm
Toll Brothers
10/28/10Here$25 mmHere
12/9/2010Here$33 mm (6)Here 
Popular, Inc.
1/27/2011Here$37.5 mmHere
JA Solar
1/28/2011Here$4.5 mm
Credit Suisse
3/10/2011Here$70 mmHere
Corus Bankshares
5/17/2011Here$10 mmHere
Oppenheimer Champion
5/19/2011Here $100 mm (8)Here
Copyright 2013 Kevin M. LaCroix
The D&O DiaryThe D&O Diary
Income Fund/ OppenheimerCore Bond Fund
Fidelity Ultra Short BondFund
6/17/2011Here$7.5 mim
6/29/2011Here$3 mmHere
Washington Mutual
6/30/2011Here,Here andHere$208.5 mm (9)Here
Wells Fargo Mortgage-BackedCertificates
7/6/2011Here$125 mmHere
Levitt Corp.
7/15/2011Here$1.95 mm
7/27/2011Here$12.5 mm
Wachovia Preferred Securitiesand Bond/Notes Litigation
8/5/2011Here$627 mmHere
National City Corporation
8/8/2011Here$168 mmHere
Colonial Bank 
8/12/2011Here$10.5 mmHere
Lehman Brothers Holdings – Equity and Debt HoldersLitigation
8/24/2011Here/Here$90 mm/$8.25mmHere
Prudential Financial
8/25/2011Here$16.5 mm
9/6/2011Here$68 mm
Lehman Brothers – MortgageBacked Securities Litigation
11/10/2011Here$40 mm
Merrill Lynch MortgageBacked Securities
11/18/2011Here$315 mm
Wachovia Equity Holders’Action
11/21/2011Here$75 million
Lehman Brothers/ OfferingUnderwriters
12/2/2011Here$417 million
12/21/2011Here$79 million
PFF Bancorp
1/23/2012Here$8.25 million
American Capital
2/9/2012Here$18 million
CIT Group
3/13/2012Here$75 million
Deutsche Bank Alt-A Securities
3/26/2012Here$32.5 million
Thornburg Mortgage (Note 11)
4/16/2012Here$2 million
Bear Stearns
6/6/2012Here$275 million(Note 12)Here
Indy Mac/ Michael Perry
6/26/2012Here$5.5 million
Evergreen Ultra ShortOpportunities Fund
6/29/2012Here$25 million
7/9/2012Here$29.25 million
Goldman Sachs/GS MortgageSecurities Mortgage Pass-Through Certificates
Copyright 2013 Kevin M. LaCroix
8/29/2012Here$590 million
Washington Mutual MortgagePass-Through Certificates
9/4/2012Here$26 million
iStar Financial
9/7/2012Here$29 million
BofA/Merrill Lynch MergerCase
9/28/2012Here$2.43 billion
Regions Morgan Keegan Funds
10/12/2012Here$68 million(Note 13)
Fifth Third Bancorp
12/18/2012Here$16 million
Citigroup Bondholders Action
3/18/2013Here$730 million
Countrywide Mortgage BackedSecurities Action
4/17/2013Here$500 million
General Electric
4/29/2013Here$40 million
In addition to the $475 million securities class action settlement, Merrill Lynch also announced at the same time a $75 millionsettlement of the pending subprime-related ERISA settlement.
The $37.25 mm settlement consists of $24 mm payment by the company’s D&O insurers on behalf of the individualdefendants (the company itself was in bankruptcy); a payment by Deloitte & Touche LLP in the amount of $4.75 mm; and a payment of $8.5 mm by certain offering underwriters.
On May 5, 2010, Charles Schwab announced that it had agreed to pay $35 million to settle the remaining state law claims, inaddition to the previously announced $200 million it had agreed to pay to settle the federal securities law claims.
$624 mm settlement amount includes $24 mm from KPMG.
On November 8, 2010, Schwab moved to withdraw from the settlement, following a court ruling that the settlement did notinclude certain claims of claimants outside of California. A copy of the motion can be found here. On November 17, 2010, the  parties filed a joint motion to amend the settlement, to reflect the parties’ amended understanding regarding the non-Californiaclass members’ California state law claims. Refer here for the joint motion and refer  herefor the amended stipulation.
The $33 million settlement consists of a settlement of $27.1 million on behalf of Ambac and its directors and officers and aseparate $5.9 settlement on behalf of Ambac’s offering underwriters.
When the court approved the settlement, the aggregate settlement amount was reduced to $601.5 million, as the settlementagreement had been revised to provide a separate fund of $22.5 million to fund possible separate settlements of opt out actions.Refer  here.
The total of $100 million was allocated $52.5 mm to the Champion Income Fund class and $47.5 million to the Core BondFund class. This settlement does not relate to the separate Oppenheimer Rochester Funds consolidated cases.
The WaMu consolidated securities lawsuit settlement actually consisted of three separate settlements: a $105 mm settlementon behalf of the individual defendants; an $85 million settlement on behalf of the offering underwriter defendants; and an $18.5million settlement on behalf of the company’s auditor.
The parties’ settlements in principle are subject to the agreement of the bankruptcy court to lift the stay to allow the insurersto fund the settlements, as well as court approval. The two settlements consist of an agreement to settle the consolidated equityand debt holders’ action for $90 million (refer here) and the separate action of New Jersey state officials for $8.25 million (refer here).
The underwriter defendants were not a party to this settlement.
A separate $19.9 million settlement with Deloitte and Touche brought the total settlement value in the action to just under $295 million.
The global settlement amount of $68 million resolved a number of related lawsuits including not only the consolidatedshareholders suit but also the related shareholders derivative lawsuit.
Table II:
Securities Class Action
Dismissals GrantedCompany Date Link 
With Prejudice?D&O Diary Post
11/29/07Here No (12), (19)Here
New Century Financial Corp.
01/31/08Here NoHere
IndyMac Bancorp
05/08/08Here No (12), (19)
Copyright 2013 Kevin M. LaCroix

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