* NY attorney general case is over 2006-2007 transactions
* Accuses the bank of misleading mortgage investors
* Credit Suisse says case outside statute of limitations
* Says the lawsuit duplicates investor lawsuits
By Karen Freifeld
NEW YORK, April 2 Credit Suisse Group AG
asked a court to dismiss a lawsuit by New York
Attorney General Eric Schneiderman that accuses the Swiss bank
of deceiving investors in mortgage-backed securities that
resulted in $11.2 billion of losses.
In a Monday filing in the New York State Supreme Court in
Manhattan, Credit Suisse said the attorney general waited too
long, was precluded by federal law, and was not specific enough
in detailing the alleged wrongdoing to allow the case to go
Schneiderman sued in November, accusing Credit Suisse of
misrepresenting the quality of loans underlying securities it
sponsored and underwrote in 2006 and 2007.
But Credit Suisse said the lawsuit substantially mimicked
other lawsuits filed as much as five years ago, and used
"hindsight" to buttress stale claims that could ultimately only
benefit sophisticated investors, who should have known the
securities were risky to begin with.
"It is striking how threadbare the allegations are even with
all of the extra time the NYAG took to file it," the bank's
Damien Lavera, a Schneiderman spokesman, said the attorney
general is confident he will prevail, and hold accountable
"those responsible for the misconduct that led to the crash of
the housing market and the collapse of the American economy."
Schneiderman is co-chair of a state-federal task force
including the U.S. Securities and Exchange Commission, that is
investigating misconduct in the packaging and sale of
mortgage-backed securities that helped lead to the financial
The SEC in November reached a $120 million settlement with
Credit Suisse, and the bank said Schneiderman's lawsuit rehashed
some claims addressed in that accord.
Credit Suisse also said the lawsuit was barred by a
three-year statute of limitations and by the National Securities
Markets Improvement Act of 1996, which preempts state securities
Schneiderman has argued that a six-year statute applies.
In October, Schneiderman sued JPMorgan Chase & Co
over mortgage-backed securities created by Bear Stearns Cos, the
investment bank it acquired in 2008.
The JPMorgan case was the first lawsuit to come out of the
task force. JPMorgan is trying to dismiss that case, raising
some of the same arguments as Credit Suisse.
The case is People of the State of New York v Credit Suisse
AG, New York State Supreme Court, New York County No.