Deutsche Bank Sued Over $512 Million in Mortgage Securities
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Deutsche Bank AG’s Ace Securities was sued in New York state court for fraud for allegedly misrepresenting the quality of $512 million worth of residential mortgage-backed securities by Phoenix Light SF Ltd.
Phoenix Light, which bought and later sold the securities, is seeking at least $300 million in damages, according to a summons filed yesterday. It accuses Ace Securities of making “material misrepresentations and omissions” regarding underwriting standards used to issue the mortgage loans that were pooled together into the offerings, according to court filings.