On November 24, financial institutions including AEGON, Pacific Investment Management Co., Prudential Financial Inc., Kore Advisors LP, Sealink Funding Ltd., TIAA-CREF Bond Fund, and affiliates, sued Citibank N.A. in the United States District Court for the Southern District of New York. The plaintiffs purport to sue derivatively on behalf of the securitization trustee, and in the alternative bring a putative class action on behalf of all current certificateholders. The complaint asserts six causes of action: (1) breach of contract; (2) violation of the Trust Indenture Act; (3) negligent breach of pre-default duty of independence; (4) breach of the fiduciary duty of care; (5) negligent breach of the duty of care; and (6) breach of the post-default fiduciary duty of independence. The plaintiffs seek damages and costs, as well as an order requiring Citibank to undertake "corrective actions." Complaint.
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