Thornburg Mortgage Inc. : Mortgage Pass-Through Certificates

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Thornburg Mortgage Inc. : Mortgage Pass-Through Certificates Summary: According to the complaint filed March 27, 2009, the Offering Documents pursuant to which Defendants issued the Certificates contained material false and misleading statements with respect to: (a) compliance with stated underwriting guidelines; (b) the quantity of mortgage loans originated pursuant to various documentation programs, including fully documented loans and stated income loans; (c) the borrowers' debt-to-income ratio; (d) the level of credit enhancement calculated to afford a certain pre-determined level of protections to investors; (e) the ratings issued by the Rating Agency Defendants to each class of Certificates; and (f) the conflict of interest between the Rating Agency Defendants and the issuers of the Certificates.

On February 26, 2010, District Judge James O. Browning granted the motion to appoint the Maryland-National Capital Park & Planning Commission Employees’ Retirement System and the Midwest Operating Engineers Pension Trust Fund as lead plaintiff and approved their selection of Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel. The lead plaintiff filed an Amended Complaint on December 10, 2010. The defendants responded by filing a motion to dismiss the Amended Complaint on February 11, 2011.

On March 22, 2011, the plaintiffs filed a Notice of Voluntary Dismissal as to Thornburg Mortgage Securities Trust 2007-4, Thornburg Mortgage Securities Trust 2006-3 and Thornburg Mortgage Securities Trust 2006-5.

According to a news article dated October 3, 2011, on Friday, Albuquerque Federal Court Judge James Browning denied the rating agencies' motion to dismiss claims that they made false statements in connection with the sale of securities backed by Thornburg-issued mortgages. The order doesn't include any explanation, merely citing Sept. 19 oral arguments. But the key difference between the Thornburg MBS class action and all of its unsuccessful predecessors is that the Thornburg plaintiffs were able to assert New Mexico's since-repealed state securities law.

According to a news article dated November 25, 2011, a federal judge has said credit ratings are not always protected opinion under the First Amendment, a defeat for credit rating agencies in a lawsuit brought by investors who lost money on mortgage-backed securities. The Nov. 12 decision was a little-noticed setback for McGraw-Hill Cos' Standard & Poor's, Moody's Corp's Moody's Investors Service and Fimalac SA's Fitch Ratings, which have long invoked First Amendment free speech protection to defend against lawsuits over their ratings. These agencies had argued that the Constitution protected them from claims they issued inflated ratings on more than $5 billion of securities issued in 2006 and 2007, and backed by loans from former Thornburg Mortgage Inc and other lenders. But the judge said the ratings were shared with too small a group of investors to deserve the broad protection sought. 'The court rejects the rating agency defendants' arguments that the First Amendment provides any protection to them under the facts of this case,' U.S. District Judge James Browning in Albuquerque, New Mexico, wrote in a 273-page opinion. Browning nonetheless dismissed claims accusing Moody's and Fitch, but not S&P, of misrepresentations, saying the investors did not adequately allege that the two agencies did not believe their ratings, or knowingly concealed their inaccuracy. He also said federal law preempts some arguments that the investors used to recover under New Mexico securities law. The judge said the investors may file an amended complaint, which had sought class-action status. If the state law claims went forward, it could provide an avenue for investors to go after the agencies in other states.

On December 19, 2011, a Second Amended Complaint was filed.

INDUSTRY CLASSIFICATION:
SIC Code: 6798
Sector: Financial
Industry: Consumer Financial Services

COMPANY/ISSUER NAME:	Thornburg Mortgage Inc.
COMPANY/ISSUER TICKER:	THMRQ
COMPANY WEBSITE:	http://www.thornburgmortgage.com http://www.tmstcorp.com/

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Genesee County Employees' Retirement System, et al. v. Thornburg Mortgage Inc., et al.

COURT: D. New Mexico	DOCKET NUMBER: 09-CV-00300
JUDGE NAME: Hon. James O. Browning
DATE FILED: 03/27/2009	SOURCE:
CLASS PERIOD START: 12/22/2005	CLASS PERIOD END: 02/28/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Carpenter, Stout and Ransom, Ltd. 1600 University Boulevard, N.E., Suite A, Albuquerque, NM, 10005 (voice) 212.907.0700, (fax) 212.818-0477, Labaton Sucharow LLP 140 Broadway, New York, NY, 10005 (voice) 212.907.0700, (fax) 212.818.0477, info@labaton.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Notice Of Removal
Type: Complaint		Date on the document: 03/27/2009
Order Appointing The Maryland-National Capital Park & Planning Commission Employees' Retirement System And Midwest Operating Engineers Pension Trust Fund As Lead Plaintiff And Approving Lead Plaintiff's Selection Of Lead Counsel
Type: Order Appointing LP/LC		Date on the document: 02/26/2010

REFERENCE COMPLAINT

Genesee County Employees' Retirement System, et al. v. Thornburg Mortgage Inc., et al.

COURT: D. New Mexico	DOCKET NUMBER: 09-CV-00300
JUDGE NAME:
DATE FILED: 12/19/2011	SOURCE:
CLASS PERIOD START: 01/01/2006	CLASS PERIOD END: 01/31/2007
TYPE OF COMPLAINT: Second Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Barroway Topaz Kessler Meltzer & Check, LLP (Radnor) 280 King of Prussia Road, Radnor, PA, 19087 (voice) 610.667.7706, (fax) 610.667.7706, info@btkmc.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Amended Complaint For Violations Of §§11, 12(a)(2) And 15 Of The Securities Act Of 1933 And §§58-13B-30.B And 58-13B-40.A Of The New Mexico Securities Act Of 1986
Type: Complaint		Date on the document: 12/10/2010
Plaintiffs' Notice Of Voluntary Dismissal Without Prejudice Of Defendants Thornburg Mortgage Securities Trust 2006-3, Thornburg Mortgage Securities Trust 2006-5, And Thornburg Mortgage Securities Trust 2007-4
Type: Notice		Date on the document: 03/22/2011
Order
Type: Other		Date on the document: 09/30/2011
Memorandum Opinion And Amended Order
Type: Other		Date on the document: 11/12/2011
Second Amended Complaint for Violations of §§11, 12(a)(2) and 15 of the Securities Act of 1933 and §§58- 13B-30.B and 58-13B-40.A of the New Mexico Securities Act of 1986
Type: Complaint		Date on the document: 12/19/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 12/28/2011

OTHER DOCUMENTS

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

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