Coughlin Stoia Geller Rudman & Robbinsannounced that a class action lawsuit is pending in the United States District Court for the Eastern District of New York on behalf of investors of MBS and ABS certificatesof JPMorgan Acceptance Corp.
The suit is based on false and misleading registration statements and prospectus supplements issued between January 2006 and March 2007 by JPMorgan Acceptance.
The complaint charges JPMorgan Acceptance, certain of its officers and directors and the issuers and underwriters of the certificates with violations of the Securities Act of 1933.
JPMorgan Acceptance was formed in 1988 to acquire own and sell interests in those assets. JP Morgan Acceptance is a subsidiary of JPMorgan Securities and is engaged in mortgage lending and other real estate finance-related businesses.
The complaint alleges that on July 29, 2005 and February 8, 2006, JPMorgan Acceptance and the defendant issuers caused registration statements to be filed with the Securities and Exchange Commission (SEC) in connection with the issuance of billions of dollars of certificates.
The certificates were issued pursuant to prospectus supplements, each of which was incorporated into the registration statements. The certificates included several classes or tranches, which had various priorities of payment, exposure to default, interest payment provisions and/or levels of seniority.
The certificates were backed by large pools of mortgage loans. The registration statements represented that the mortgage pools would primarily consist of loan groups generally secured by first liens on residential properties, including conventional, adjustable rate and negative amortization mortgage loans.