JPMorgan Sued Over $402 Million in Mortgage Securities

The following article is brought to you by Chris Dolmetsch at BusinessWeek.Com.

JPMorgan Chase & Co. (JPM) (JPM) was sued by DZ Bank (DZBK), Germany’s largest cooperative lender, over allegations the bank made false and misleading statements in selling residential mortgage-backed securities.

The lawsuit, filed March 30, seeks about $402 million in damages, according to a court filing.

The complaint was the second filed this year by DZ Bank against JPMorgan in New York state Supreme Court over the investments, pools of home loans securitized into bonds that were a central part of the housing bubble that helped send the U.S. into the biggest recession since the 1930s.

DZ Bank sued New York-based JPMorgan on Jan. 31, saying it bought $85 million worth of the securities based on flawed offering materials. It sued HSBC Holdings Plc, Europe’s biggest bank, the next day over $122 million worth of the investments.

Jennifer Zuccarelli, a spokeswoman for JPMorgan, didn’t immediately respond to an e-mail seeking comment on the suit.

The case is Deutsche Zentral Genossenschaftsbank AG v. JPMorgan Chase & Co., 651021/2012, New York State Supreme Court (Manhattan).

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