United States Second Circuit

Dismissal of plaintiff's complaint alleging the registration statement and the prospectus for a mortgage-backed security contained material misstatements and omissions, is: 1) reversed in part, where the allegations in the complaint state a plausible claim that the offering documents for the security misstated the applicable underwriting standards in violation of section 11, 12(a)(2), and 15 of the Securities Act of 1933 and the alleged misstatements were not immaterial as a matter of law; and 2) vacated in part and remanded, with regard to the district court's determination that plaintiff, as the representative of a proposed class, lacked standing to pursue claims based on securities in which it had not invested, in light of subsequent case law.

Appellate Information

• Decided 03/01/2013
• Published 03/01/2013

Judges

• KATZMANN

Court

• United States Second Circuit

Counsel