Daily Archives: January 20, 2016

Freddie Mac settles with Deloitte in $1.3 billion suit over Taylor, Bean & Whitaker

The court battle between Freddie Mac and Deloitte & Touche over allegations of fraud involving the spectacular collapse of Taylor, Bean & Whitaker is now over after the two sides agreed to dismiss Freddie Mac’s $1.3 billion lawsuit against Deloitte.

Freddie Mac initially sued Deloitte & Touche in 2014, alleging that Deloitte had been “grossly negligent” in its auditing of the financials of Taylor, Bean & Whitaker, which Freddie Mac relied upon as part of its seller/servicer agreement with TBW.

Law360.com first reported the settlement, which was disclosed in a Wednesday court filing.

The two sentence filing states that Freddie Mac and Deloitte agree to the dismissal of the suit, with prejudice. The filing also states that each party will “bear its own costs and fees.”

Read on.

AG Maura Healey: Massachusetts foreclosure law cannot be repealed by ballot vote

BOSTON — Attorney General Maura Healey has ruled that opponents of a new law related to clearing titles of foreclosed homes cannotattempt to repeal the law through a ballot referendum.

Healey wrote in a letter to Secretary of the Commonwealth William Galvin on Tuesday that the title clearing law “is not lawfully the subject of a referendum petition.”

Sarah McKee, a former federal prosecutor from Amherst who signed a petition to repeal the law that initiated the ballot referendum process, said she is disappointed in Healey’s ruling. “I’m disappointed that the attorney general who takes an oath to support the Massachusetts Constitution did not consider the ways in which this new law … actually violates the Constitution,” McKee said.

Read on.

Bank of America to pay $2.25 million settlement of customer-service reps’ overtime class-action

SAN FRANCISCO – A federal judge approved a $2.25 million settlement of customer-service reps’ overtime class-action against Bank of America, including $573,000 in attorney’s fees and costs.

Source: Courthouse News

Here is the court document. Click here.

China Officials Warn of Global Financial Crisis

Chinese officials predict economic turmoil for the global economy.  State Councillor Yang Jiechi told G-20 representatives in Beijing that recent volatility and “constant changes and intense transformations” will lead to unprecedented challenges to the world.  “It is not possible to completely discard the possibility that an economic crisis could once again take place, and the problem should not be neglected,” he said in the meeting, adding “preventing or reducing negative effects from countries’ domestic policy measures is a pressing task.”

A China Problem?

A growing number of analysts are fearful that a new economic downturn may gin, not because of a drag from the United States, but from disappointment in China. Prior to Yang’s comments, data from China’s 2015 two-way trade report showed that the country’s trade had fallen 8 percent on a year-over-year basis to $3.96 trillion, far below the 6 percent growth that the government had hoped for.

Read on.

GM lobs mortgage fraud accusation on ignition-switch trial plaintiff

An Oklahoma man, who is the first to take General Motors to court over its faulty ignition switches, saw his credibility called into serious question when lawyers for the automaker accused him of committing mortgage fraud.

The Detroit News (recapping a Bloomberg piece) has the full story on the courtroom battle between Robert Scheuer and GM.

From The Detroit News:

Robert Scheuer, a mail carrier who claims the defect disabled his air bag in a 2014 car wreck, blames GM for the eviction, arguing that memory loss he suffered in the accident caused him to misplace a $49,500 check for a down payment on the home in suburban Tulsa.

GM’s lawyers said they uncovered evidence that Scheuer, his wife and two children actually were kicked out of the house because a real estate agent found Scheuer had faked a $441,430.72 check stub from his federal government retirement account as “proof of funds” to close the sale.

Read on.