A federal judge has refused to dismiss a class action suit against Bank of America, its home loan and reinsurance subsidiaries and a number of private mortgage insurers, instead directing the parties to develop a record on the issue of whether the statute of limitations should be equitably tolled based on the plaintiffs’ claims that the defendants allegedly engaged in a scheme to use mortgage insurance premiums to fund illegal kickbacks to lenders.
In Riddle v. Bank of America Corp., U.S. District Judge Berle M. Schiller of the Eastern District of Pennsylvania said the plaintiffs alleged facts sufficient to defeat the defendants’ motions to dismiss at the current stage of the litigation.
