Ally Bank 2012 Annual Report Download - page 208

206
Massachusetts Mutual Life Insurance Company Litigation
On February 9, 2011, the Massachusetts Mutual Life Insurance Company (MassMutual) filed a complaint in the United States District
Court for the District of Massachusetts against numerous defendants, including Ally Securities and a former director of ResCap. The
complaint alleges that the defendants' public filings and offering documents associated with MBS that MassMutual purchased contained false
statements and omissions of material facts. MassMutual asserts claims for violations of the Massachusetts Uniform Securities Act and seeks
both compensatory and statutory damages. The defendants' motion to dismiss was granted in part and denied in part in February 2012,
although claims against Ally Securities remain.
New Jersey Carpenters Litigation
On January 3, 2011, New Jersey Carpenters Health Fund, New Jersey Carpenters Vacation Fund, and Boilermaker Blacksmith National
Pension Trust, on behalf of themselves and a putative class (collectively, New Jersey Carpenters), filed a Consolidated Second Amended
Securities Class Action Complaint against numerous defendants including Ally Securities, and a number of ResCap entities and individual
directors and officers. The complaint alleges that the plaintiffs and the class purchased MBS between June 28, 2006, and May 30, 2007, and
asserts that the offering documents associated with these transactions contained misrepresentations and omitted material information in
violation of the federal securities laws. The complaint seeks compensatory damages, rescission or a rescissory measure of damages, and
attorneys' fees and costs, among other relief. New Jersey Carpenters moved for class certification. The court denied the plaintiffs' motion for
class certification, and the Plaintiffs appealed and 2nd Circuit affirmed the District Court's ruling. Plaintiffs were then allowed limited
discovery to re-attempt class certification and the District Court certified a modified class and allowed claims to be reinstated by certain
intervenors. The defendants have filed a motion for reconsideration of class certification.
Stichting Pensioenfonds Litigation
On October 11, 2011 Stichting filed a complaint in District Court of Minnesota against Ally Financial Inc., Ally Securities, and a number
of ResCap entities and individual directors and officers. The complaint alleges fraud, aiding and abetting fraud, negligent misrepresentation
and violation of state securities laws and seeks money damages, including attorney's fees, court costs and expert fees, and judgment interest.
The Defendants filed a motion to dismiss on July 30, 2012. The plaintiffs subsequently were granted leave to amend their complaint which
added Ally Bank, IB Finance Holding Co., and two securities offerings. The Defendants anticipate filing a motion to dismiss.
Union Central Life Litigation
Union Central filed a complaint on April 28, 2011 against Ally Financial Inc., Ally Securities and a number of ResCap entities and a
former ResCap director alleging violation of the federal securities laws, state common law fraud, negligent misrepresentation and unjust
enrichment. The plaintiff seeks compensatory and statutory damages, and attorneys fees and costs, including expert witness fees. A motion to
dismiss was filed on July 27, 2012.
Western & Southern Litigation
Western & Southern filed a complaint on June 30, 2011 in Hamilton County, Ohio against Ally Securities and a number of ResCap
entities alleging violation of state securities laws and negligent misrepresentation and seeks rescission and money damages, including
compensatory and punitive damages, interest, and attorney's fees and costs. A motion to dismiss was granted for all parties except Ally
Securities.
Private-label Monoline Bond Insurer Claims
Assured Guaranty Litigation
Assured Guaranty filed a complaint on May 11, 2012 in Federal District Court, the Southern District of New York, against Ally
Financial, Ally Bank and a number of ResCap entities alleging claims for breach of contract, reimbursement and indemnification under New
York law and seeks monetary damages in connection with 2004 and 2006 mortgage securitizations.
MBIA Litigation
MBIA Insurance Corporation (MBIA) filed complaints on December 4, 2008, and April 1, 2010, in the New York County Supreme Court
against GMAC Mortgage and RFC. The complaints allege that defendants breached their contractual representations and warranties relating
to the characteristics of mortgage loans contained in certain insured MBS offerings and includes claims for fraud, improper servicing and
failure to notify the insurer of the alleged breach. Both cases were automatically stayed on May 14, 2012 in connection with the Debtors'
bankruptcy filings. MBIA subsequently filed a complaint on September 17, 2012 against Ally Financial Inc., IB Finance Holding Company
LLC, Ally Bank, Ally Securities, and GMACMG, alleging aiding and abetting common law fraud, and against Ally Bank, breach of contract
relating to the characteristics of the mortgage loans contained in certain insured offerings and seeks damages relating to all claims. The
Defendants filed a motion to dismiss on February 15, 2013.
FGIC Litigation
FGIC filed twelve complaints in New York state court against Ally Financial Inc. (ten of the twelve), Ally Bank (four of the twelve) and
a number of ResCap entities between November 29, 2011 and March 13, 2012, alleging that the Debtor defendants breached their contractual
representations and warranties relating to the characteristics of mortgage loans contained in certain insured MBS offerings. FGIC also alleges
that Ally Financial Inc. is liable under alter ego and fraudulent inducement theories and that Ally Bank aided and abetted such fraudulent
inducement and seeks damages relating to all claims. All of the FGIC cases were removed to the U.S. District Court for the Southern District
of New York, and the defendants have asked the Court for leave to file motions to dismiss each case.
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K