An indication that the financial crisis is not that far behind us, Northbrook, Ill.-based Allstate Corp. has filed a lawsuit against New York-based JP Morgan Chase & Co. for alleging misrepresenting the risk profile of the securities it sold the insurer.
Filed in the New York State Supreme Court in Manhattan, Allstate Bank et al v. JPMorgan Chase Bank NA et al, New York State Supreme Court, New York County, No. 650398/2011, also names various subsidiaries including Washington Mutual Capital Corp. and Bear Stearns as defendants. The suit arises out of the sale of residential mortgage-backed securities sold to Allstate from 2004 to 2007. JP Morgan declined to formally comment on the lawsuit, according to a Reuters’ report, which recounted that its chairman, James “Jamie” Dimon, indicated that JP Morgan would contest lawsuits filed on a securitization by securitization basis. “It’s going to be a long, ugly mess,” Dimon was reported to have said.
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