Kohn Swift brought a suit on behalf of the Police and Fire Retirement System of the City of Detroit (“PFRS”) and a class of all persons who acquired the IndyMac INDX Mortgage Loan Trust 2007-AR5 certificates (collectively, the “Certificates”) of defendant IndyMac MBS, Inc. (“IndyMac”) pursuant and/or traceable to false and misleading Registration Statements filed with the SEC on August 15, 2005, February 24, 2006, and February 14, 2007 as well as accompanying Prospectuses and Prospectus Supplements incorporated by reference (collectively, the “Offering Documents”). The suit was brought against IndyMac and certain executives, the Individual Defendants, as well as the Underwriters involved in issuing the Certificates.
On May 14, 2009 Kohn Swift filed the initial complaint in this matter. On July 13, 2009, Kohn Swift filed a motion to have PFRS appointed lead plaintiff. The motion was denied. Instead, the court appointed the Wyoming Retirement System (“Wyoming”) as lead plaintiff since it purportedly had a larger loss. Wyoming, however, did not purchase the certificate PFRS purchased; namely the IndyMac INDX Mortgage Loan Trust 2007-AR5 Certificates. The court permitted PFRS to intervene in the action, at least with respect to asserting a Section 12(a)(2) claim under the Securities Act, on behalf of a class of purchasers of the IndyMac INDX Mortgage Loan Trust 2007-AR5 certificate.
In July 2012 a partial settlement for $6 million as to the Individual Defendants was reached. Litigation continued against the Underwriter Defendants. In the summer of 2014 Lead Plaintiff reached a settlement with the remaining Underwriter Defendants for $340 million. The court granted final approval of the settlement on February 23, 2015. The case is styled: In Re IndyMac Mortgage-Backed Securities Litigation, No. 09-cv-04583-LAK.
Documents: PFRS Complaint, Second Circuit Opinion, Final Approval of Settlement Agreement