2nd Circuit remakes MBS class action rules in Goldman ruling
By Alison Frankal - Thomas Reuters News & Insight
. . . . So how significant is the 2nd Circuit's expansion of MBS standing? That's not entirely clear. As I've previously written, we're already in the late stages of MBS class action litigation, and the ruling certainly isn't going to make a difference in the half-dozen settled cases. But there are at least another half-dozen MBS class actions still in the works. Standing has already been litigated in many of them, but plaintiffs with the stomach for more litigation can presumably move to add claims based on the 2nd Circuit's holding. If those motions are granted, the class will undoubtedly face additional litigation over discovery related to the additional trusts and, eventually, over class certification.
Nevertheless, Darren Robbins of Robbins Geller and Steven Toll of Cohen Milstein Sellers & Toll both told me the 2nd Circuit decision is great news for MBS class action plaintiffs. "We hope the certification rulings in the future will follow the scope of the 2nd Circuit's ruling," Toll said in an email. Robbins said there are still billions of dollars at stake in pending MBS class actions in which this ruling may apply. "Just in this case, the decision makes a difference of millions of dollars," Robbins said. He also noted that the 2nd Circuit's holding that MBS investors need not show an out-of-pocket loss to establish damages will help individual plaintiffs in MBS cases.
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