Authored by Aaron Rubin
On March 21, 2017, Judge Naomi Reice Buchwald of the United States District Court for the Southern District of New York issued a Memorandum and Order granting defendants' motion to dismiss plaintiffs' First Amended Complaint in Triaxx Prime CDO 2006-1, Ltd., et al. v. The Bank of New York Mellon and U.S. Bank, for lack of standing. In dismissing the claims, the court held that the plaintiff CDOs – certificateholders in several RMBS trusts for which the defendants, U.S. Bank and Bank of New York Mellon, serve as RMBS trustees – had ceded any right to initiate litigation on their own behalf when they assigned away "all . . . right, title and interest" in the underlying assets to their respective CDO indenture trustees. Judge Buchwald granted leave to file an amended complaint within thirty days so long as any such amended complaint explains how the plaintiffs' cured the standing issue. Order and Memorandum.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.