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JPMorgan Acceptance Corp. I (JPMAC) Securities Litigation


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Wolf Popper Obtains $280 Million Settlement In JPMorgan Mortgage Pass-Through Litigation

On July 24, 2014, United States District Judge Pamela K. Chen approved  a settlement in Plumbers’ & Pipefitters’ Local #562 Supplemental Plan & Trust et al. v. J.P. Morgan Acceptance Corp.  The action was led by the Public Employees’ Retirement System of Mississippi, on behalf of a class of investors.

At the hearing to determine whether the terms of the settlement were fair, reasonable, and adequate, the Court found that “the representation of both sides was obviously very vigorous. The plaintiffs, I know, expended efforts in terms of pursuing the investigation, the theories, the research and the advocacy.”  The Action “was a difficult case.  Certainly in the beginning, at the time when some of the principals, the legal principles that are applied in this case, in any cases related to mortgage-backed securities, was not well established. They did yeomen's work, I think, in trying to establish some of those principles. . . . [T]his is a good result in this particular case.”  Similarly, the Court found that, in its role as Lead Plaintiff, MissPERS “vigorously represented the class.” 

Additional information about the settlement is available in the Notice of Pendency of Class Action and Proposed Settlement, Final Approval Hearing, and Motion for Attorneys’ Fees and Reimbursement of Litigation Expenses. Those investors in the Settlement Class are required to submit a Proof of Claim and Release by September 6, 2014 in order to participate in the distribution of assets from the Settlement Fund.  More information, including information related to the Plan of Allocation, is available on the Settlement website:  www.jpmcertificatesettlement.com.

Lead Plaintiffs Obtain Preliminary Court Approval for $280 Million Settlement In JPMorgan Mortgage Pass-Through Litigation

On May 2, 2014, the Honorable Pamela K. Chen in the Eastern District of New York entered a Preliminary Approval Order (the “Order”) scheduling a hearing to be held on July 24, 2014 at 10:00 a.m. in order to consider final approval of a Stipulation and Agreement of Settlement (the “Settlement”) in Plumbers’ & Pipefitters’ Local #562 Supplemental Plan & Trust et al. v. J.P. Morgan Acceptance Corp. I et al., 2:09-cv-01713 (PKC) (WDW) (the “Action”).  The Settlement reached by Lead Plaintiff the Public Employees’ Retirement System of Mississippi, on behalf of the Class (as defined in the Order), will resolve the Action for a total of $280 million in cash.

Additional information about the Settlement is available in the Notice of Pendency of Class Action and Proposed Settlement, Final Approval Hearing, and Motion for Attorneys’ Fees and Reimbursement of Litigation Expenses. Those investors in the Settlement Class are required to submit a Proof of Claim and Release by September 6, 2014 in order to participate in the distribution of assets from the Settlement Fund.  More information, including information related to the Plan of Allocation, is available on the Settlement website:  www.jpmcertificatesettlement.com.

JP Morgan Acceptance Corp. I (“JPMAC”)

Wolf Popper currently represents the Public Employees’ Retirement System of Mississippi (MissPERS), as lead plaintiff, in an action against JPMorgan Acquisition Corp. (“JPMAC”), certain individuals employed by JPMAC or its affiliates, and JP Morgan Securities, Inc., on behalf of investors who purchased certain mortgage pass-through certificates (mortgage-backed securities).  The case is pending the United States District Court for the Eastern District of New York, Case No. 08cv1713, before the Hon. Edward R. Korman.

MissPERS’s amended complaint alleges that the offering documents pursuant to which the JPMAC securities were sold contained misrepresentations and omitted to disclose information concerning the underwriting of the mortgage loans serving as collateral for the securities. On December 13, 2011, the court denied in part and granted in part the defendants’ motion to dismiss (the “Dismissal Order”).  Significantly, the Dismissal Order sustained the vast majority of MissPERS’s substantive allegations but limited the scope of MissPERS standing to those tranches that it had purchased in several of the offerings at issue.  

On January 11, 2012 MissPERS made a motion to amend the Dismissal Order to include certification for interlocutory appeal on the standing questions addressed by Judge Korman. On May 4, 2012, the court stayed MissPERS’s motion to amend pending the hearing and determination of the appeal in NECA-IBEW Health & Welfare Fund v. Goldman, Sachs & Co., No. 11-2762 (2d Cir., argued Feb. 3, 2012) (“NECA-IBEW”), a case that considered the same tranche-based standing requirement at issue in JPMAC.

On September 6, 2012 the Second Circuit issued its opinion in the NECA-IBEW case and held, with respect to the standing issues, that an investor could bring claims related to any securities that were backed by mortgages emanating from the same financial institution.  Acknowledging the effect of the decision in NECA-IBEW, on September 14, 2012 Judge Korman issued an order indicating that he would amend his Dismissal Order to reflect the expanded standing required under NECA-IBEW.  The parties are now engaged in discovery on the sustained claims which involve 26 of the offerings included in the amended complaint.  

Discovery is set to continue through the first quarter of 2014.

Mississippi Pers Appointed Lead Plaintiff And Wolf Popper LLP Appointed Co-Lead Counsel In JP Morgan Mortgage-Pass Through Certificates Securities Class Action

On November 24, 2009 U.S. District Judge Edward R. Korman appointed the Public Employees' Retirement System of Mississippi ("MissPERS") as lead plaintiff, and its counsel, Wolf Popper LLP and Bernstein Litowitz Berger & Grossmann LLP, as co-lead counsel in a securities class action brought on behalf of investors who purchased or otherwise acquired beneficial interests in certain mortgage pass-through certificates offered by JPMorgan Acceptance Corp. I (“JPMAC”) and certain of its affiliates.  The action seeks recovery from JPMAC, certain individual employees of JPMAC or its affiliates, JP Morgan Securities, Inc., and from the rating agencies that provided credit ratings on the securities, specifically, Moody’s Investors Service, Inc., the Standard & Poor’s division of the McGraw Hill Companies, Inc. and Fitch, Inc. 

The consolidated action is pending in the U.S. District Court for the Eastern District of New York, Case No. 08cv1713 (ERK)(WDW).  Lead Plaintiff filed a Consolidated Amended Complaint on March 8, 2010.  Defendants have moved to dismiss that complaint, and those motions are fully briefed.  The Court has not yet rendered a decision on the motions to dismiss.


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