BlackRock, Allianz SE, Pacific Investment Management Co and TIAA-CREF, can now pursue claims accusing HSBC of breach of contract, and concealing known defects in mortgage loans backing 283 trusts, according to an article in Reuters.
"Based on plaintiffs' detailed allegations, it is indeed plausible to infer that HSBC had actual knowledge of breaches in representations and warranties in the specific loans at issue," U.S. District Judge Shira Scheindlin in Manhattan wrote in a 53-page decision. "How HSBC gained this actual knowledge, or whether in fact it had actual knowledge, may be determined through discovery."
According to the article, Scheindlin dismissed some claims, including for negligence and negligent misrepresentation. She gave the plaintiffs 30 days to amend their complaints, and scheduled a June 24 conference.
