On June 18, Royal Park Investments filed a putative class action in the Southern District of New York against Deutsche Bank National Trust Company. This action is similar to a series of lawsuits filed by a group of institutional investors against Deutsche Bank and other RMBS trustees, which was covered in last week's issue. Royal Park alleges that Deutsche Bank, as trustee, breached its contractual obligations and fiduciary duties in connection with 10 RMBS trusts for which it served as trustee by failing to provide notice that many loans in the trusts were defective, to provide that events of defaults resulting from servicer conduct had occurred, and to take appropriate remedial action in light of those occurrences. The complaint asserts three causes of action: (1) violation of the Trust Indenture Act; (2) breach of contract; and (3) breach of trust. The plaintiff seeks damages, equitable relief and costs. Complaint.
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