German lender HSH Nordbank is suing JPMorgan Chase and Ally Financial, among other financial institutions, over losses it sustained in mortgage bonds that it said were misrepresented.
Bloomberg reported that in its suit filed Thursday in New York Supreme Court, HSH Nordbank said offering documents for the securities contained “material misrepresentations and omissions” about the loans backing the securities.
In three separate cases totaling $293 million in losses over mortgage bonds, the German lender, based in Hamburg, has said that wrongdoing by JPMorgan, Ally, Barclays Capital, Credit Suisse Securities (USA) and others “led directly” to losses on the securities, according to court papers.