Stockholders v Structured Asset Mortgage Investments II, Inc. : Bear Stearns Alt-A Trust 2006-6
Stockholders File Lawsuit Against Structured Asset Mortgage Investments II, Inc. : Bear Stearns Alt-A Trust 2006-6
According to a press release dated July 09, 2009, the complaint alleges that on March 6, 2006, Structured Asset and the Issuers caused a Registration Statement to be filed with the Securities and Exchange Commission (SEC) in connection with the issuance of the Certificates. The Certificates were issued pursuant to Prospectus Supplements, each of which was incorporated into the Registration Statement. The Certificates were supported by large pools of mortgage loans. The Registration Statement represented that the mortgage pools would primarily consist of loan groups generally secured by first liens on residential properties, including conventional, adjustable rate and negative amortization mortgage loans.
According to the complaint, the Registration Statement included false statements and/or omissions about: (i) the underwriting standards purportedly used in connection with the origination of the underlying mortgage loans; (ii) the maximum loan-to-value ratios used to qualify borrowers; (iii) the appraisals of properties underlying the mortgage loans; and (iv) the debt-to-income ratios permitted on the loans. As a result of these misstatements and omissions, the Certificates were secured by assets that had a much greater risk profile than represented in the Registration Statement, and defendants offered superior credit ratings on the Certificates as a result of defendants failure to disclose the underwriting defects and appraisal manipulations. However, by late 2008, the amount of uncollectible mortgage loans securing the Certificates began to be revealed to the public and the rating agencies began to put negative watch labels on many Certificate classes, ultimately downgrading many. The delinquency and foreclosure rates of the mortgage loans securing the Certificates has grown both faster and in greater quantity than what would be expected for mortgage loans of the types described in the Prospectus Supplements. As a result, the Certificates are no longer marketable at prices anywhere near the price paid by plaintiff and the Class.
If you bought Structured Asset Mortgage Investments II, Inc. : Bear Stearns Alt-A Trust 2006-6 securities and would like to obtain information about the Structured Asset Mortgage Investments II, Inc. : Bear Stearns Alt-A Trust 2006-6 lawsuit, then you are invited to call Kahn Swick Foti, LLC toll free at (866) 467-1400 to speak with an attorney or visit www.ksfcounsel.com.
