United States Second Circuit

In a putative class action brought under Sections 11, 12(a)(2), and 15 of the Securities Act on behalf of all persons who acquired certain mortgage-backed certificates issued under the same allegedly false and misleading shelf registration statement, district court's dismissal of class action for lack of standing and for failure to allege a cognizable injury under section 11 is affirmed in part, vacated in part where: 1) plaintiff has standing to assert the claims of purchasers of certificates backed by mortgages originated by the same lenders that originated the mortgages backing plaintiff's certificates, because such claims implicate "the same set of concerns" as plaintiff's claims; and 2) plaintiff need not plead an out-of-pocket loss in order to allege a cognizable diminution in the value of an illiquid security under Section 11.

Appellate Information

• Decided 09/06/2012
• Published 09/06/2012

Judges

• Parker

Court

• United States Second Circuit

Counsel