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Subprime suits: the slow pace of litigation.

Publication: The International Economy
Publication Date: 22-SEP-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
As the American subprime mortgage crisis progresses, a litigation aftershock moves through U.S. courts. Though court filings lag behind the triggering subprime events, a wave of securities-related lawsuits reflects the magnitude of the current crisis. More than six hundred lawsuits have been filed through the second quarter of 2008, exceeding the total associated with the savings and loan crisis of the 1980s. In the civil cases filed to date, plaintiffs have employed various theories of liability, generally focusing on claims of fraud and inadequate disclosure and oversight. The litigation reflects the size of the subprime mortgage meltdown but only hints at the global nature of...

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