The Recorder Profiles David Stickney as a “Groundbreaker” for his Success in RMBS Litigation

April 15, 2016

As part of its 2016 “Litigation Department of the Year” series, The Recorder has profiled partner David Stickney as a “Groundbreaker” — one of only two individual litigators to be so recognized — for his success in “blaz(ing) a trail for recovering billions from sellers of toxic mortgage securities.” 

In its profile, the esteemed California legal periodical discussed Mr. Stickney’s strategy and experience in leading the case against Bear Stearns for its sale of defective mortgage-backed securities, and which recovered $500 billion for investors after six years of intense litigation.  According to Mr. Stickney, the team focused primarily on uncovering proof that the misconduct was rooted in “the platform level, the mortgage-origination machine,” as doing so would go “a long way towards showing that the individual products coming off the assembly line were defective.”  Since BLB&G had already successfully prosecuted several subprime-related cases, the firm had developed an “expertise on the mortgage and packaging business and knew over time where the bodies were buried.”

In commenting about that significance of the case in light of the recent financial crisis, Mr. Stickney acknowledged that “for myself and everyone else involved you had a sense you were involved in something historic.  I was very satisfied with the results we were able to achieve for our clients in these cases. And I believe that it will contribute toward deterring similar conduct going forward. I also believe that there's a lot of opportunity for corruption and greed in a lot of different things and we haven't seen the end of that.”  

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