|Court:||New York Supreme Court, New York County|
|Case Number:||Index No. 651918/2011|
|Case Leaders:||Gerald H. Silk, Avi Josefson, Michael D. Blatchley|
This direct action asserts claims against Deutsche Bank AG, Deutsche Bank Securities, Inc., ACE Securities Corp., Deutsche Alt-A Securities, Inc. and Db Structured Products, Inc. (collectively, "Deutsche Bank" or "Defendants") related to the underwriting and sale of residential mortgage-backed securities ("RMBS") to Plaintiffs Dexia SA/NV, Dexia Holdings, Inc., FSA Asset Management LLC, and Dexia Crèdit Local SA (collectively, "Dexia" or "Plaintiffs").
On July 13, 2011, Dexia filed a Complaint in the Supreme Court of the State of New York alleging claims for fraud and other claims arising out of Dexia's over $1 billion investment in triple-A RMBS underwritten and sold by Deutsche Bank. Dexia invested in these securities in reliance upon Deutsche Bank's representations attesting to their quality, that they were backed by loans that had been prudently underwritten and secured by collateral in accordance with underwriting guidelines of the companies originating the underlying mortgage loans, and that Deutsche Bank had performed due diligence in verifying the quality of the loans. Unbeknownst to Dexia, Deutsche Bank's traders internally referred to such RMBS, including the Deutsche Bank RMBS purchased by Dexia, as "pigs" and "crap." Armed with the knowledge of their true quality, Deutsche Bank then used its own capital bet against these RMBS and the U.S. housing market in general, eventually developing a $10 billion "short" position that paid off when the Deutsche Bank RMBS (and similar securities) declined in value.
- Events BLB&G Partner Jerry Silk Serves as “Private Securities Litigation” Panelist at PLI’s 54th Annual Institute on Securities Regulation November 9, 2022 Learn More
- Events BLB&G Hosts Corporate Charter Amendments and Officer Accountability Webinar November 8, 2022 Learn More
- Events BLB&G Director of European Client Development Anatoli van der Krans to Speak on Panel at Natixis CIB Green Summit November 7, 2022 Learn More
- Awards BLB&G Recognized as a Top Tier Firm for National and Metropolitan Litigation Practices by U.S. News – Best Lawyers ® “Best Law Firms” 2023 November 4, 2022 Learn More
- Events BLB&G Partner Rebecca Boon and Associate Brittney Balser Serve on Planning Committee for Beyond #MeToo Working Group Panel, “#MeToo and Athletics: Where We Have Been and Where We Must Go” November 3, 2022 Learn More