US - A pension fund and a health fund will be lead plaintiffs in two separate class actions filed against Structured Asset Mortgage Investments (SAMI) and Bear Stearns Asset-Backed Securities (BSABS).
The Pension Trust Fund for Operating Engineers will be lead plaintiff in the lawsuit against SAMI, while the New Jersey Carpenters Health Fund will be lead plaintiff in the action against BSABS.
Both actions are filed on behalf of the purchasers of mortgage pass-through certificates issued by the two companies.
The actions allege the registration statements and prospectuses related to the issuance of those certificates contained "material misstatements and omissions in violation of sections 11, 12 and 15 of the Securities Act of 1933".
They also allege, as a result of these misstatements and omissions, the certificates were secured by assets that had a much greater risk profile than represented in the registration statement and prospectuses.
The law firm representing the plaintiffs in the action against BSABS is Cohen Milstein Sellers & Toll, while the law firm representing the plaintiffs in action against SAMI is Coughlin Stoia Geller Rudman & Robbins.
The actions are pending in the US District Court in the Southern District of New York.
Besides SAMI and BSABS, the defendants in the actions include also JP Morgan Chase, following last year's acquisition of Bear Stearns.
JP Morgan did not immediately return emails seeking comments.
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