|  | | 2005 News and Press Releases | | |
DISMISSAL NEWS:
Scienter Not Pleaded Against Canadian Company In Alleged Loan Origination, Securities Fraud Scheme
Judge Scheindlin
New York Law Journal. September 15, 2005
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EXCERPT: TEAMSTERS LOCAL 445 FREIGHT DIVISION PENSION FUND v. BOMBARDIER INC.- I. INTRODUCTION Teamsters Local 445 Freight Division Pension Fund ('Teamsters') brings this action on behalf of open market purchasers of certain Certificates offered by Bombardier Capital Mortgage Securitization Corporation ('BCM') and Bombardier Capital Inc. ('BCI'). The Certificates were secured by pools of manufactured housing installment sales contracts and mortgage loans. The gravamen of plaintiff's allegations is that defendants engaged in a scheme to defraud investors through misrepresentations and omissions regarding the integrity of BCI's underwriting standards for loan origination in order to amass large volumes of manufactured housing loans for immediate profit in the asset-backed securities market. Plaintiff is alleging violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 of the Securities and Exchange Commission. All defendants other than Gillespie now move to dismiss the Complaint, arguing that it fails to state a cause of action for securities fraud, that Teamsters' claims are time-barred, and that Teamsters does not have standing to pursue the vast majority of the claims asserted. For the following reasons, defendants' motion is denied as to BCI, BCM, Peters, and Assell, but granted as to BI and Beaudoin. …V. CONCLUSION For the foregoing reasons, defendants' motion to dismiss is denied as to BCI, BCM, Peters, and Assell, but granted as to BI and Beaudoin, without prejudice, and with leave to replead within twenty days of receipt of this Opinion and Order. The Clerk of the Court is directed to close the motion [Docket #16]. A conference is scheduled for September 15, 2005, at 2:30 p.m. So Ordered. |
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