The law firm representing Teachers Insurance & Annuity Association and ING Investment Management in their suit against Enterprise Mortgage Acceptance Co. significantly amended the original complaint last week, further alleging that EMAC's majority equity investor and co-defendant Koch Industries had thorough knowledge of the company's alleged questionable lending practices, and was even represented to investors as being involved in the underwriting process.

Koch, of course, disputes the allegations and plans to move for a dismissal on or before the deadline set by the court, which was recently extended to Sept. 6. "We are confident that Koch will be shown to have acted completely appropriately," said Mary Beth Jarvis, spokesperson for Koch. "The complaint, amended or otherwise, has no merit, and we intend to move promptly to have it dismissed."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.