Trustee files $95 million suit against JPMorgan Chase
JPMorgan Chase (JPM), Bear Stearns and EMC Corp. are named defendants in a $95 million representation and warranties case in which a trustee of asset-backed securities claims the defendants made inaccurate statements about the quality of residential mortgages placed into a trust. In addition, the plaintiff trust claims the firms failed to honor buyback provisions outlined in the initial contract. In the lawsuit, which was filed on Dec. 30, the Bear Stearns Asset Backed Securities Trust 2005-4 claims the defendants made false representations regarding the loans pooled into the trust and then failed to honor a reps-and-warrants contract that stipulates the repurchase of distressed loans sold into the trust after allegedly being materially misrepresented. The trustee in the complaint also said the pooling-and-servicing agreement guiding the contract between the companies forces the defendants to provide loan files at the plaintiffs request, and the defendants have so far failed to do so. JPMorgan acquired Bear Stearns in March 2008. Write to Kerri Panchuk.