HSH Nordbank has filed a suit in the New York state court against JPMorgan Chase over losses on $159 million RMBS it purchased from the bank, according to a Reuters report.
The lawsuit, according to the filing, alleged fraud and sought damages in an amount currently estimated to be at least $42 million.
HSH claims that the offering materials on the debt were misleading as to 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,” the German lender stated.
