Alleged Misrepresentations in RMBS Offering Documents. In a case stemming from the housing and credit crises, the plaintiffs accused a major bank and other defendants of using misleading offering documents. The case was one of the earliest of the residential mortgage-backed securities (RMBS) matters and went through multiple phases: class certification, motion to dismiss, summary judgment, expert reports and depositions, and expert Daubert motions.

Counsel for the bank retained Dr. Allan Kleidon, a senior vice president at Cornerstone Research, to opine on issues related to class certification, damages, and loss causation. Cornerstone Research also worked with Mr. Charles Grice of CRI Compliance on due diligence practices, and with Professor Arnold Barnett of the MIT Sloan School of Management on statistical sampling issues.

The plaintiffs alleged that the offering documents related to the issuance of more than $1 billion of RMBS that the bank underwrote between 2006 and 2007 contained material misstatements and omitted material information concerning applicable home loan underwriting standards. The allegations included violations of Sections 11, 12, and 15 of the Securities Act.

which experts did Cornerstone Research collaborate with on matters related to due diligence practices and statistical sampling issues?