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The U.S. Supreme Court won’t hear RBS and Nomura’s appeal of an $806 million award against them related to failure to disclose information about mortgage-backed securities before the 2008 financial crisis.
Nomura Securities International Inc. and RBS Securities Inc. appealed after a federal appeals court upheld an $806 million award to the Federal Housing Finance Agency in a 151-page September 2017 opinion. Nomura and RBS told the Supreme Court that FHFA filed suit too late and any suit should’ve been heard before a jury, but the court June 25 declined to hear the case.
RBS and Nomura in March asked the justices to resolve whether the 2008 Housing and Economic Recovery Act’s statute of limitations extension also displaced state and federal statutes of repose. Statutes of repose are similar to statutes of limitations, but turn on events other than the legal injury giving rise to the claim. The companies also asked the court to consider whether securities claims must be tried to a jury.
A trial court awarded FHFA $806 million because Nomura and RBS made misleading statements in an attempt to sell reverse mortgage-backed securities. FHFA oversees companies operating in the secondary mortgage market such as Fannie Mae and Freddie Mac.
Attorneys for Nomura and RBS didn’t immediately respond to a request for comment.
The case is Nomura Sec. Int’l Inc. v. Fed. Hous. Fin. Agency , U.S., No. 17-1302, cert. denied 6/25/18 .
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