RALI MBS Litigation
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Welcome to the RALI MBS Litigation Website

On February 19, 2015 the Court entered its Order Preliminarily Approving the Proposed Settlement and Providing for Notice (the “Preliminary Order”) in connection with the Action settlement, plan of allocation of settlement proceeds and the attorneys’ fees and litigation expenses to be awarded from the settlement.

The purpose of this website is to inform you about two proposed settlements of the following class action lawsuit: New Jersey Carpenters Health Fund, et al., v. Residential Capital, LLC, et al., No. 08-cv-8781 (S.D.N.Y.) (KPF) (the “Action”), and about your legal rights and options in connection with these settlements. This website explains the Action, the proposed settlements, your legal rights, what benefits are available, who may be eligible for those benefits, and how to get them.

The Court in charge of this case is the United States District Court for the Southern District of New York (the “Court”) and the Judge currently presiding over this case is the Honorable Katherine Polk Failla, United States District Judge. The people who are suing are called plaintiffs, and those who are being sued are called defendants. In this case, the primary plaintiff is referred to as the Lead Plaintiff and the defendants are certain investment banks that underwrote the Offerings (i.e., the Underwriter Defendants), and certain entities and persons that were involved in sponsoring or underwriting the ResCap Settlement Certificates (i.e., the ResCap Defendants, the Individual Defendants, and Ally Securities). The Underwriter Settlement is with the Underwriter Defendants only, (i.e., Citigroup, GS&Co., and UBS). Litigation against the ResCap Defendants, the Individual Defendants, and Ally Securities was concluded by the ResCap Settlement on or about October 8, 2013. The Underwriter Settlement and the ResCap Settlement together are referred to as the “Global Settlement.” In the above-referenced Preliminary Order, the Court sets forth terms of a proposed settlement for potential class members who may have purchased or otherwise acquired an interest in one or more of the Certificates and/or the ResCap Settlement Certificates described further below.

A class action is a type of lawsuit in which the claims of a number of individuals are resolved together, thus providing the class members with both consistency and efficiency. In a class action lawsuit, a court selects one or more people, known as class representatives or Lead Plaintiffs, to sue on behalf of all people with similar claims, commonly known as the class or the class members. Once the class is certified, the court must resolve all issues on behalf of the class members, except for any persons who choose to exclude themselves from the class. (For more information on excluding yourself from the Underwriter Settlement Class, please see below chart option “EXCLUDE YOURSELF FROM THE UNDERWRITER SETTLEMENT CLASS BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION SO THAT IT IS RECEIVED NO LATER THAN JUNE 22, 2015” located below.) In the Action, the Court has directed that Lead Plaintiff and Lead Counsel have primary responsibility for prosecuting all claims in the Action on behalf of investors in the Certificates and/or the ResCap Settlement Certificates as described in the proceeding paragraphs.

POTENTIAL CLASS MEMBERS WHO MAY HAVE PURCHASED OR OTHERWISE ACQUIRED AN INTEREST IN ONE OR MORE OF THE CERTIFICATES FROM THE UNDERWRITER DEFENDANTS. Please be advised that your rights may be affected by the Action if you purchased or otherwise acquired interests in any mortgage asset-backed pass-through certificates issued by any of the following twenty (20) RALI trusts: RALI Series 2006-QH1, RALI Series 2006-QO1, RALI Series 2006-QO2, RALI Series 2006-QO3, RALI Series 2006-QO5, RALI Series 2006-QS7, RALI Series 2006-QO6, RALI Series 2006-QS8, RALI Series 2006-QO7, RALI Series 2006-QS15, RALI Series 2006-QO10, RALI Series 2007-QS1, RALI Series 2007-QS2, RALI Series 2007-QS5, RALI Series 2007-QH1, RALI Series 2007-QH2, RALI Series 2007-QH3, RALI Series 2007-QH4, RALI Series 2007-QH5, and RALI Series 2007-QH6 (herein referred to as the “Offerings” with their constituent certificates constitute the “Certificates”).

New Jersey Carpenters Health Fund (the “Lead Plaintiff”) and additional Named Plaintiffs, on behalf of the Underwriter Settlement Class, have reached a proposed settlement (the “Underwriter Settlement”) of the Action for a total of $235 million in cash that will resolve all claims in the Action against Underwriter Defendants. The terms of the Underwriter Settlement are set forth in the Underwriter Stipulation that has been filed with the Court.

If you are a member of the Underwriter Settlement Class, you are subject to the Underwriter Settlement unless you timely and validly request to be excluded. The Underwriter Settlement Class consists of all Persons who purchased or otherwise acquired interests in the above Certificates on or before the date when a claim concerning those Certificates was first asserted in the Action (i.e., the Date of First Suit).

Excluded from the Underwriter Settlement Class are those persons who have filed a timely and valid request for exclusion in accordance with the requirements set forth in this Notice. Also excluded from the Underwriter Settlement Class are the Underwriter Defendants.

PLAN OF ALLOCATION FOR DISTRIBUTION OF BOTH THE $235 MILLION UNDERWRITER SETTLEMENT AND THE PREVIOUSLY APPROVED $100 MILLION SETTLEMENT WITH THE RESCAP DEFENDANTS, THE INDIVIDUAL DEFENDANTS, AND ALLY SECURITIES: Please be advised that, in addition to containing a plan of allocation for the $235 million Underwriter Settlement, there is also a plan of allocation pertaining to funds from a previously approved $100 million settlement (the “ResCap Settlement,” with the $100 million constituting the “Gross ResCap Settlement Fund”) with the ResCap Defendants, the Individual Defendants, and Ally Securities, pertaining to mortgage asset-backed pass-through certificates issued by the following fifty-nine (59) RALI trusts: RALI Series 2007-QS1, RALI Series 2007-QO4, RALI Series 2007-QH4, RALI Series 2006-QO7, RALI Series 2007-QS5, RALI Series 2006-QS7, RALI Series 2007-QO2, RALI Series 2006-QS11, RALI Series 2007-QS4, RALI Series 2006-QA4, RALI Series 2006-QA6, RALI Series 2006-QA7, RALI Series 2006-QA8, RALI Series 2006-QA10, RALI Series 2006-QA11, RALI Series 2007-QA1, RALI Series 2007-QA2, RALI Series 2007-QO3, RALI Series 2007-QA3, RALI Series 2007-QA5, RALI Series 2007-QH8, RALI Series 2007-QH9, RALI Series 2007-QO5, RALI Series 2007-QS11, RALI Series 2007-QS6, RALI Series 2006-QS8, RALI Series 2006-QS9, RALI Series 2007-QS7, RALI Series 2007-QH2, RALI Series 2007-QH5, RALI Series 2007-QH6, RALI Series 2006-QS18, RALI Series 2006-QO10, RALI Series 2006-QO3, RALI Series 2006-QO6, RALI Series 2007-QH3, RALI Series 2007-QS2, RALI Series 2006-QO9, RALI Series 2006-QO8, RALI Series 2006-QO5, RALI Series 2006-QA5, RALI Series 2006-QA9, RALI Series 2006-QH1, RALI Series 2006-QO4, RALI Series 2006-QS5, RALI Series 2006-QS16, RALI Series 2006-QS17, RALI Series 2007-QH1, RALI Series 2007-QO1, RALI Series 2007-QS3, RALI Series 2007-QA4, RALI Series 2007-QH7, RALI Series 2007-QS8, RALI Series 2007-QS10, RALI Series 2006-QS12, RALI Series 2006-QS13, RALI Series 2006-QS6, RALI Series 2007-QS9, and RALI Series 2006-QS15 (the “ResCap Settlement Offerings,” with their constituent certificates constitute the “ResCap Settlement Certificates”).

The $235 million Underwriter Settlement, subject to the Underwriter Stipulation, together with the $100 million ResCap Settlement, subject to the Stipulation and Agreement of Settlement with the ResCap Defendants, dated June 14, 2013 (the “ResCap Stipulation”), is referred as the Global Settlement Fund, totaling $335 million. The Global Settlement Fund will be distributed in accordance with the Global Settlement Plan of Allocation.

If you are a member of the ResCap Settlement Class, you are subject to the ResCap Settlement unless you timely filed a request to be excluded in response to the notice issued to potential members of the ResCap Settlement Class on or after July 10, 2013 pertaining to the ResCap Settlement. The ResCap Settlement Class, consists of all persons or entities who purchased the ResCap Settlement Certificates, and who failed to timely submit a request to be excluded. Excluded from the ResCap Settlement Class are the Defendants (as defined in the ResCap Stipulation), and their respective officers, affiliates and directors at all relevant times, members of their immediate families and their legal representatives, executors, estates, administrators, successors and assigns, insurers, and any entity in which any Defendants (as defined in the ResCap Stipulation) have or had a controlling interest, provided that any Investment Vehicle (as defined in the ResCap Stipulation) shall not be deemed an excluded person or entity by definition.