Bank of America gets $1 billion Baupost lawsuit dismissed

Reuters News
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Posted: Mar 29, 2012 12:28 PM
Bank of America gets $1 billion Baupost lawsuit dismissed

NEW YORK (Reuters) - Bank of America Corp on Thursday won dismissal of a lawsuit by investors who wanted the bank to buy back mortgage loans that underlie more than $1.06 billion of securities.

New York State Supreme Court Justice Barbara R. Kapnick granted the bank's motion to dismiss the case by investors who sued under the name Walnut Place. The investors claimed BofA's Countrywide unit made false representations about the loans.

Walnut Place, which sued on behalf of a trust that owned 6,531 loans, is a name used by money manager Seth Klarman's hedge fund.

New York attorney David Grais, who represents Walnut Place, did not immediately respond to a request for a comment.

(Reporting By Karen Freifeld; additional reporting by Alison Frankel; Editing by Maureen Bavdek)