Residential Accredit Loans, lnc. ("RALI") is a residential funding company that offers mortgage asset-backed pass-through certificates.

This case was removed from the New York State Supreme Court to the Federal United States District Court for the Southern District of New York. On October 14, 2008, the Complaint and notice of removal was filed in the federal district court.

The Complaint alleges violations of Sections 11, 12 and 15 of the Securities Act of 1933 after the sales of Certificates, backed by pools of one- to four-family residential, payment-option, adjustable-rate first lien mortgage loans with a negative amortization feature.

On May 18, 2009, a Consolidated First Amended Securities Class Action was filed by the lead Plaintiffs in this matter.

On March 31, 2010, an opinion and order partially dismissed the claims asserted by the Plaintiffs. The Court's conclusion stated that the Plaintiffs' claims with regard to the offerings they did not purchase are dismissed for lack of standing. Plaintiffs' claims related to allegations of conflicts of interest between the RBS Defendants and the rating agencies, as well as claims related to allegations of outdated rating models and inadequate credit enhancements, are dismissed for failure to state a claim. Plaintiffs' claims related to the disregard of underwriting guidelines may proceed.

On August 16, 2010, the Plaintiffs filed a motion for class certification.

On January 4, 2011, a Consolidated Second Amended Class Action Complaint was filed. The Defendants responded by filing a motion to dismiss. According to the Opinion and Order dated April 28, 2011, Judge Harold Baer granted the motions to dismiss to the extent that Intervenors' section 12 claims are dismissed, RALI Intervenors' Section 15 claims against the Underwriter Defendants are dismissed, IPERS's claims related to Harborview offerings 2006-10 and 2007-7 are dismissed, and OCERS's claims related to RALI offering 2006-Q06 are dismissed. Having considered Defendants' remaining arguments and found them unavailing, the motions to dismiss are otherwise denied.

According to the Amended Opinion and Order dated May 19, 2011, the motions to dismiss are granted to the extent that Intervenors' section 12 claims are dismissed, RALI Intervenors' Section 15 claims against the Underwriter Defendants are dismissed, IPERS' s claims related to Harborview offerings 2006-10 and 2007-7 are dismissed, and OCERS's claims related to RALI offering 2006Q06 are dismissed. Having considered Defendants' remaining arguments and found them unavailing, the motions to dismiss are otherwise denied.

On October 15, 2012, the Court issued an Order granting lead Plaintiff's amended motion for class certification.

On January 3, 2013, the Court issued an Order ruling on a number of motions. Defendants' motion to dismiss, RALI Defendants' motion to stay, and Plaintiff's motion to reconsider were all denied. Plaintiffs' application for the modification of class definition was granted.

On April 30, 2013, the Court issued an Order granting the Harborview Plaintiffs' motion for reconsideration, and granting in part and denying in part the RALI Plaintiffs' motion for reconsideration.

On May 10, 2013, the Plaintiffs filed a consolidated third amended Complaint.

On June 14, 2013, the Plaintiffs and certain Defendants arrived at a Settlement Agreement. The Settlement was preliminarily approved by the Court on June 28. On October 7, 2013, the Court issued an Order granting Counsel's reimbursement of expenses. On October 8, 2013, the Court issued an Order approving the Settlement.

On February 13, 2015, the Plaintiffs and certain Underwriter Defendants reached a Settlement Agreement. This Settlement was preliminarily approved by the Court on February 19. On July 31, the court granted final approval and dismissed this case. The Court issued an Order directing a cy pres distribution of the residual net Settlement fund on September 9, 2020.