Citigroup, Goldman Sachs and UBS were each individually sued over losses on $368.7 million in mortgage-backed securities, Bloomberg reported Sept. 5. Claims against the financial institutions included fraud and negligent misrepresentation.
The three financial institutions were alleged to have made “material misrepresentations” regarding loans backing the securities and pertaining to the transfer of the loans into trusts, according to filings in New York State Supreme Court, Bloomberg reported.
IKB Deutsche Industriebank AG sued both Citigroup (over losses on $137.4 million in mortgage securities) and Goldman Sachs (over $73.2 million in securities). IKB, a German lender, claimed that it sold the securities at a loss.
Sealink Funding Ltd. sued UBS over $158.1 million in bonds. The securities in question either currently are held by Sealink or previously were sold at a loss, according to court documents, Bloomberg reported.
Spokespersons for all three banks being sued refused to comment on the legal action, Bloomberg reported.
The cases are IKB International SA in Liquidation v. Citigroup Inc., 653100-2012; IKB International SA in Liquidation v. Goldman Sachs Group Inc., 653101-2012; and Sealink Funding Ltd. v. UBS AG, 653102-2012, New York State Supreme Court (Manhattan).