LaCroix reports on four dismissal rulings in which federal district court judges have permitted at least some plaintiffs’ claims to proceed. Defendants in the four cases are DLJ Mortgage Capital/Credit Suisse (Cohen Milstein Sellers & Toll is lead plaintiffs counsel; Bingham McCutchen is lead defense counsel); Residential Capital (Cohen Milstein for the plaintiffs; Shearman & Sterling, Fried Frank, and Morgan Lewis & Bockius for defendants); Citigroup Mortgage Loan Trust (Robbins Geller Rudman & Dowd for the plaintiffs; Cleary Gottlieb Steen & Hamilton on defense); and Deutsche Alt-A Securities (Robbins Geller versus Latham & Watkins).
LaCroix, bless his heart, has plowed through these and a bunch of other recent dismissal decisions to discern some trends. Most importantly, he says, judges aren’t permitting plaintiffs to proceed with claims involving offerings in which they didn’t make purchases. That was the governing principle in last week’s big Merrill Lynch ruling by Manhattan federal district court judge Jed Rakoff, and it’s held true in the most recent decisions as well.
