New York Court Throws Out Two Investor Lawsuits Involving Subprime Securities

Despite the current climate of anti-Wall Street fervor from the public, two recent decisions illustrate that, at least in New York, the courts will not allow public sentiment to trump the law as it should be applied to financial institutions that dealt in subprime mortgage-related securities.  In Ambac¹ and Oddo,² Judge Barbara R. Kapnick dismissed with prejudice two separate lawsuits that investors brought against their portfolio managers, a rating agency, and the sponsor of a structured vehicle, on the grounds that these plaintiffs could not state a basis in law to sue for the alleged misconduct. 

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