Claiming that RBS Securities Inc. made false representations at the time that more than a dozen residential mortgage-backed securities were purchased by CUNA Mutual Insurance Society, CUMIS Insurance Society and MEMBERS Life Insurance Co., the companies have filed a lawsuit against the bank to recover $72 million in losses.
According to the CUNA Mutual complaint, between 2004 and 2007, the company said RBS "induced" it to buy 15 certificates in 10 separate RMBS offerings by making representations about the credit quality of the pools of mortgage loans collateralizing those RMBS.
RBS made these representations through its offering documents, which consisted of registration statements, prospectuses, term sheets, free writing prospectuses and prospectus supplements, CUNA Mutual said.
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