Home Equity Mortgage Trust - Securities Class Action

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Home Equity Mortgage Trust Summary: The complaint was originally filed in the Supreme Court in the State of New York on June 3, 2008 but was removed to the Southern District Court of New York after a motion filed by Moody's.

The complaint charges certain officers and directors of the underwriter Credit Suisse, as well as credit ratings institutions Moody's and DBRS with misleading investors in regards to the risk levels of Mortgage Pass-Through Certificates. Plaintiffs allege that the Underwriter did not use proper due diligence in assessing the securities and that the ratings agencies assigned the securities the highest ratings levels despite being tied to the high-risk subprime market.

On January 22, 2009, Judge Paul A. Crotty signed the Order granting the motion to appoint the New Jersey Carpenters Health Fund as lead plaintiff and approved the lead plaintiff’s selection of the law firm of Schoengold Sporn Laitman & Lometti, P.C. as lead counsel. On March 23, 2009, the lead plaintiffs filed an Amended Class Action Complaint. On June 24, 2009, the defendants responded by filing a motion to dismiss the Amended Class Action Complaint. On June 25, 2009, the lead counsel was substituted with Cohen Milstein Sellers & Toll, PLLC.

According to the Order entered on March 29, 2010, the Court grants Defendants' motion to dismiss regarding Plaintiff's lack of standing as to: (i) all claims arising from the three Offerings (HEMT 2006-4; HEMT 2006-6; and HEMT 2007-2), none of which Plaintiff purchased, and (ii) claims arising from Section 12 of the Securities Act for failure to allege that it was a direct purchase of HEMT 2006-5. Plaintiff has leave, however, to replead allegations regarding the Section 12 claims. The Court denies Defendants' motion to dismiss allegations relating to the systematic abandonment of the Guidelines. Finally, the Court grants Defendnats' motion to dismiss as to allegations relating to appraisals and appraisal practices, loan-to-value ratios, and ratings and rating methodology; In sum, the following remains of plaintiff's action: (i)claims under both Section 11 and Section 15 relating to the abandonment of the Guidelines regarding only HEMT 2006-5 and subject to correcting the pleading deficiency regarding Section 12 standing, (ii) Section 12 claims relating to the abandonment of the Guidelines regarding only HEMT 2006-5.

On April 14, 2010, the plaintiffs filed a Second Amended Complaint. On September 14, 2010, the plaintiffs filed a motion to certify the class, which was granted on August 16, 2011.

INDUSTRY CLASSIFICATION:
SIC Code: 6189
Sector: Financial
Industry: Investment Services

COMPANY/ISSUER NAME:	Home Equity Mortgage Trust 2006-5
COMPANY/ISSUER TICKER:
COMPANY WEBSITE:

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

New Jersey Carpenters Health Fund, et al. v. Home Equity Mortgage Trust, et al.

COURT: S.D. New York	DOCKET NUMBER: 08-CV-05653
JUDGE NAME: Hon. Paul A. Crotty
DATE FILED: 06/23/2008	SOURCE:
CLASS PERIOD START: 10/30/2006	CLASS PERIOD END: 06/23/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Schoengold Sporn Laitman & Lometti PC 19 Fulton Street, Suite 406, New York, NY, 10038 (voice) 212.964.0046, (fax) 212.267-8137, shareholderrelations@spornlaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint For Violations Of Section 11, 12 And 15 Of The Securities Exchange Act Of 1933
Type: Complaint		Date on the document: 06/23/2008
Order
Type: Order Appointing LP/LC		Date on the document: 01/22/2009
Amended Order Granting Motion For Substitution Of Lead Counsel
Type: Order Appointing LP/LC		Date on the document: 06/25/2009

REFERENCE COMPLAINT

New Jersey Carpenters Health Fund, et al. v. DLJ Mortgage Capital, Inc., et al.

COURT: S.D. New York	DOCKET NUMBER: 08-CV-05653
JUDGE NAME:
DATE FILED: 04/14/2010	SOURCE:
CLASS PERIOD START: 08/10/2006	CLASS PERIOD END: 06/23/2008
TYPE OF COMPLAINT: Second Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Cohen Milstein Sellers & Toll PLLC (New York) 88 Pine Street, 14th Floor, New York, NY, 10022 (voice) 212.838.7797, (fax) 212.838.7797, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Amended Securities Class Action Complaint
Type: Complaint		Date on the document: 03/23/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 09/23/2009
Second Amended Securities Class Action Complaint
Type: Complaint		Date on the document: 04/14/2010
Order
Type: Order		Date on the document: 08/16/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/03/2011

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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