%0 Journal Article %A Susan F. DiCicco %A Amiad Kushner %A Michael Rollin %T ABS East: Litigation Update %D 2014 %R 10.3905/jsf.2014.19.4.113 %J The Journal of Structured Finance %P 113-115 %V 19 %N 4 %X The Litigation Update panel provided a look back at some of the more significant developments in litigation in the last year and how they impact the ABS business. On the civil litigation front, recent RMBS litigation falls into two main categories: fraud suits and put back or repurchase litigation. Our focus for the discussion was on the latter. In the put back context, the trustee can demand that the seller repurchase one or more loans. Trustees and servicers have been in the middle of the legal wrangling between sellers and investors. The case relating to the Bank of America Countrywide settlement has taken so long that it has run against the statute of limitations, but there is a split in the New York State Supreme Court on the statute of limitations for put-back claims. The courts will also need to consider that the principal remedy under the governing agreements is the obligation to cure defective loans, and that the repurchase or cure remedies are simply remedies for a breach of representation and not additional obligations that give rise to new breaches when there are disagreements about the underlying breach of representation. The panel also discussed recent developments in CDO litigation, focusing on a civil case and an SEC case that were both concerned with the same underlying misrepresentation and failure-to-disclose allegation related to a “managed” CDO. The civil case was decided in favor of the defendant while the SEC case was decided in favor of the plaintiff.TOPICS: Asset-backed securities (ABS), legal and regulatory issues for structured finance %U https://jsf.pm-research.com/content/iijstrfin/19/4/113.full.pdf