July 24, 2012

"JP Morgan, Citigroup Lose Bid to Move $2 Billion TMST Suit"

Bloomberg, Dow Jones, Law360 and other media report on a significant development in the Thornburg Mortgage bankruptcy case; Shapiro Sher partner Joel I. Sher serves as Chapter 11 Trustee for Thornburg, now known as TMST.

The development involves the U.S. District Court for the District of Maryland denying JP Morgan, Citigroup and other financial institutions' attempt to withdraw the litigation from bankruptcy court.

In 2011, in five separate complaints filed in Maryland’s bankruptcy court, Sher sued, among others, Goldman Sachs, Barclays Capital; Bank of America; Countrywide Home Loans; Royal Bank of Canada and a group of banks made up of JP Morgan Chase, Citi Group, Credit Suisse, Royal Bank of Scotland, and UBS. The suit against the latter group of banks alone sought approximately $2.2 billion in damages arising from a series of alleged collusive and predatory actions that eventually forced Thornburg into bankruptcy.