Second
Circuit Adopts Broad Class Standing Test and Concludes
Out-of-Pocket Loss Not Required to Plead Section 11
Claim
On September 6, 2012, the U.S.
Court of Appeals for the Second Circuit held that an
investor that purchased mortgage-backed securities in
two shelf registration statement offerings had standing
to litigate securities fraud claims on behalf of
investors that purchased different securities in other
offerings pursuant to the same shelf registration
statement, but only to the extent the mortgages backing
all of the securities were originated by the same
mortgage lenders.