NEW YORK (
have been tapped in a lawsuit filed by
over what the insurer characterizes as "misinformation" concerning mortgage-backed securities.
The property and casualty insurer is claiming that it bought $200 million residential mortgage-backed securities (RMBS) from Citigroup and $185 million from the Deutsche Bank based on what Allstate claims was "false information" over underwriting standards and value of the securities.
Allstate has also sued
Bank of America
in similar lawsuits. The insurer is trying to recoup $700 million of mortgage- backed securities from JPMorgan and $700 million from Bank of America.
The insurer is claiming damages rescission, monetary losses, attorney's fees and costs, and prejudgment interest, according to a statement.
--Written by Maria Woehr in New York.
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