IKB Deutsche Industriebank has filed a suit against JPMorgan Chase based on losses that occurred over its RMBS, according to a Reuters report.
The lawsuit was filed in the New York state court and follows yesterday’s filing from HSH Nordbank.
Both filings alleged fraud and sought to rescind purchases or to recover losses on the investments, Reuters reported citing the filing.
HSH Nordbank claimed that the debt offering materials were misleading in terms of the quality of underwriting and of the underlying loans.
“The securities have performed worse than expected due to the poorer-quality collateral, and defendants’ wrongdoing has led directly to the plaintiffs’ damages,” said the German lender in the court filing.
