{"id":6064,"date":"2016-11-07T14:11:35","date_gmt":"2016-11-07T20:11:35","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1202"},"modified":"2022-03-22T15:06:48","modified_gmt":"2022-03-22T20:06:48","slug":"aozara-banks-mortgage-backed-securities-case-jpmorgan-allowed-proceed","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/aozara-banks-mortgage-backed-securities-case-jpmorgan-allowed-proceed\/","title":{"rendered":"Aozara Bank\u2019s Mortgage-Backed Securities Case Against JPMorgan is Allowed to Proceed"},"content":{"rendered":"<p>\t\t\t\tIn New York, the Appellate Division, First Department, a state appellate court, is allowing Aozara Bank\u2019s (AOZOF) mortgage-backed securities fraud lawsuit against <a href=\"https:\/\/www.investorlawyers.com\/jp-morgan-chase-background-information.html\">JPMorgan &amp; Chase (JPM)<\/a> to proceed. The Japanese bank, which had brought MBS claims against a number banks, is alleging aiding and abetting fraud and fraud related to the banks\u2019 creation, marketing, and\/or sale of high risk securities.<\/p>\n<p>Aozara had invested close to $560M by 2009 in at least 35 collateralized debt obligations that a number of banks had structured. It sued not just JPMorgan but also Barclays Bank (BARC), Deutsche Bank Securities Inc. (DB), Credit Suisse (CS), <a href=\"https:\/\/www.investorlawyers.com\/ubs-painewebber-background-information.html\">UBS AG (UBS)<\/a>, Goldman Sachs Group (GS), Credit Agricole, and Morgan Stanley (MS) in 2013.<\/p>\n<p>In the collateralized debt obligation lawsuit against JPMorgan, the First Department reversed a ruling issued earlier by the Manhattan Supreme Court. The appellate panel has now found that the Japanese bank \u00a0had properly stated claims for breach of the duty of good faith and fair dealing and also fraud. \u00a0<span class=\"\">Aozora contends that JPMorgan, which is Bear Stearns successor, depicted certain CDOs as legitimate investments even as it used them to get rid of risky assets that were toxic. The appellate panel said that JPMorgan \u00a0has not demonstrated that its claims in offering documents gave Aozora proper notice that JPMorgan defendants had colluded to accept the toxic CDO assets from Bear Stearns\u2019 balance sheets. The ruling said that Aozora\u2019s lawsuit included enough facts to support its reasonable inference that fraud and scienter had occurred.<\/span><\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/aozara-banks-mortgage-backed-securities-case-jpmorgan-allowed-proceed\/#more-6064\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In New York, the Appellate Division, First Department, a state appellate court, is allowing Aozara Bank\u2019s (AOZOF) mortgage-backed securities fraud lawsuit against JPMorgan &amp; Chase (JPM) to proceed. The Japanese bank, which had brought MBS claims against a number banks, is alleging aiding and abetting fraud and fraud related to the banks\u2019 creation, marketing, and\/or [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3958,3757],"tags":[3713,2593],"class_list":["post-6064","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-jp-morgan-chase","category-mortgagebacked-securities","tag-aozora-bank","tag-fdic"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Aozara Bank\u2019s Mortgage-Backed Securities Case Against JPMorgan is Allowed to Proceed &#8212; Investor Lawyers Blog &#8212; November 7, 2016<\/title>\n<meta name=\"description\" content=\"In New York, the Appellate Division, First Department, a state appellate court, is allowing Aozara Bank\u2019s (AOZOF) mortgage-backed securities fraud lawsuit &#8212; November 7, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/aozara-banks-mortgage-backed-securities-case-jpmorgan-allowed-proceed\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Aozara Bank\u2019s Mortgage-Backed Securities Case Against JPMorgan is Allowed to Proceed &#8212; Investor Lawyers Blog &#8212; November 7, 2016\" \/>\n<meta name=\"twitter:description\" content=\"In New York, the Appellate Division, First Department, a state appellate court, is allowing Aozara Bank\u2019s (AOZOF) mortgage-backed securities fraud lawsuit &#8212; November 7, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Aozara Bank\u2019s Mortgage-Backed Securities Case Against JPMorgan is Allowed to Proceed &#8212; 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