On March 18, 2003, the plaintiff filed a motion to dismiss. On May 29, 2003, the Court entered the Order signed by U.S. District Judge Ed Kinkeade granting the plaintiff’s motion to dismiss. The plaintiffs were ordered to notify the putative class members of the pending dismissal by publishing notice proposed in the plaintiff's motion to dismiss. Plaintiffs were ordered to notify Paine Webber Mortgage Acceptance Corporation V Mortgage Pass-Through Certificates Series 99-CI, the present holders of the securities at issue, of the pending dismissal. On September 9, 2003, the Court entered the Order dismissing the case without prejudice.
The suit arises in connection with a June 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 $616,668,000.
The class is constitute by all persons who purchased or otherwise acquired shares of PaineWebber Mortgage Acceptance Corporation V Commercial Mortgage Pass-Through Certificates, Series 1999-C1 and who received a Prospectus dated March 25, 1999 and Prospectus Supplement to Prospectus dated June 1, 1999. The class period begins with the initial offering of the Certificates and continues through September 3, 2002.