On March 18, 2003, the plaintiff filed a motion to dismiss, which was granted in the Order entered on May 29, 2003.
The suit arises in connection with a November 1, 1999 transaction in
which the former Paine Webber entities transferred loans to a trust. The
suit alleges that the Defendants committed securities fraud by making
material misrepresentations and omissions about the quality of the loans
Paine Webber transferred to the trust. Specifically, the suit notes that
compared to all loans in the Loan Pool, the Paine Webber loans have
disproportionately gone into default or required special attention, and
have later been found not to meet the standards represented in the
prospectus and prospectus supplement.
The complaint asserts claims based on violations of the Exchange Act
section 10(b) (15 U.S.C. section 78j) and Rule 10b-5 (17 C.F.R. section
240.10b-5); violation of the Exchange Act section 20(a) (15 U.S.C.
section 78t); violation of the Securities Act section 11 (15 U.S.C.
section 77k); violation of the Securities Act section 12(a)(2) (15
U.S.C. section 77l); and violation of the Securities Act section 15 (15
U.S.C. section 77o). It seeks as relief rescission of the plaintiff
class' investment in the Certificates, or in the alternative, actual
damages at least in the amount of $549,923,000.
The class is constitute by all who purchased or otherwise acquired shares of Merrill Lynch Mortgage Investors, Inc. Mortgage Pass-Through Certificates Series 1999-C1 and received a Prospectus dated October 15, 1999 and a
Prospectus Supplement to Prospectus dated October 15, 1999. The Class
Period begins with the initial offering of the Certificates and
continues through September 3, 2002.