Ally Bank 2012 Annual Report Download - page 207

205
Cambridge Place I and II Litigation
On February 11, 2011, Cambridge Place Investments filed two complaints against Ally Securities and a number of ResCap entities
alleging violations of state securities laws and seeks, in both cases, recovery of money damages, together with statutory interest from the date
of payment, costs, and attorneys' fees. Plaintiff dismissed the Debtor entities in March 2012 and the case remains pending against Ally
Securities only.
FDIC Litigation
The Federal Deposit Insurance Corporation filed four complaints against Ally Securities between May 2012 and August 2012 alleging
violations of federal and state securities laws, in each alleging that Ally Securities made misleading statements in a registration statement.
Plaintiff seeks rescission and money damages in all cases including pre- and post-judgment interest, attorney's fees and costs of court. Ally
Securities has filed motions to dismiss in three of the four cases, and expects to file a motion to dismiss in the fourth case as well.
FHFA Litigation
FHFA, as conservator for Freddie Mac, filed a complaint on September 2, 2011, against Ally Financial Inc., Ally Securities, GMAC
Mortgage Group (GMACMG), and a number of ResCap entities, in New York County Supreme Court. The case was removed to Federal
District Court, Southern District of New York. Subsequent to the ResCap bankruptcy filing, the FHFA amended its complaint to remove all
Debtor entities. The complaint alleges that Ally Financial Inc., GMACMG and Ally Securities violated federal and state securities laws and
engaged in aiding and abetting a fraud, asserts control person liability against Ally Financial. The plaintiff seeks rescission and recovery of
money damages, with interest, as well as consequential and punitive damages, attorney's fees and costs and judgment interest. Motions to
dismiss were filed by defendants on July 13, 2012, and were granted in part and denied in part on December 19, 2012. The dismissed portions
of the complaint did not substantially alter the original allegations, entities involved, or securities offerings at issue in the case.
FHLB Litigation
Federal Home Loan Bank (FHLB) of Indianapolis filed an Amended Complaint in Marion County Superior Court for rescission and
damages on July 14, 2011, asserting claims for common law negligence and violations of state and federal securities laws, and names Ally
Securities, and GMACMG, and a number of ResCap entities. The complaint alleges that the offering documents for the securities
underwritten and issued by the defendants contained material misrepresentations of fact, evidenced by high default and foreclosure rates, and
seeks damages or statutory recovery upon tender, plus interest, attorneys' fees, and costs, including expert witness fees and an order voiding
the transactions at issue. The defendants filed a motion to dismiss, which was granted in part and denied in part. The negligent
misrepresentation claim remains against Ally Securities only.
FHLB of Boston filed a complaint on April 20, 2011, in Suffolk County Superior Court, naming numerous defendants including Ally
Financial Inc.; GMACMG, and a number of ResCap entities. The complaint alleges that the defendants collectively packaged, marketed,
offered, and sold private-label MBS, and FHLB of Boston purchased such securities in reliance upon misstatements and omissions of material
facts in the offering documents. The complaint alleges negligent misrepresentation and violations of the Massachusetts Uniform Securities
Act. Plaintiffs seek damages, plus interest, attorneys' fees, and costs, including expert witness fees. The defendants removed this case to
federal court. The AFI Entities filed a Motion to Dismiss on October 11, 2012.
FHLB of Chicago filed a Corrected Amended Complaint for Rescission and Damages on October 15, 2011, in Cook County Circuit
Court, which names, among other defendants, Ally Financial Inc., Ally Securities, GMACMG, and a number of ResCap entities. The
complaint alleges that the offering documents for the securities underwritten and issued by defendants contained material misrepresentations
of fact and asserts claims for violations of state securities law and negligent misrepresentation. The complaint seeks rescission of the
transactions at issue, money damages, and attorney's fees and costs, including expert witness fees. The defendants' motion to dismiss was
denied September 12, 2012.
John Hancock Litigation
John Hancock Life Insurance Company filed a complaint in Hennepin County, Minnesota on July 27, 2012 against Ally Financial Inc.,
Ally Bank, Ally Securities, GMACMG and a number of ResCap individual directors and officers. The complaint alleges fraud, aiding and
abetting fraud, negligent misrepresentation, and violations of federal and state securities laws. The plaintiff seeks rescission and money
damages, including costs, reasonable attorneys' fees and expert fees, and prejudgment interest relating to forty-nine securities offerings.
Huntington Bancshares Litigation
Huntington Bancshares, Inc. (Huntington), commenced a lawsuit on October 11, 2011, against Ally Financial Inc., Ally Securities, and a
number of ResCap entities and individual directors and officers. The complaint alleges that the defendants made misrepresentations and
omissions of material facts related to the originator's loan underwriting guidelines in the offering materials for five residential mortgage-
backed securities. The complaint asserts claims for fraud, aiding and abetting fraud, negligent misrepresentation, and violation of the
Minnesota Securities Act and seeks rescission, money damages, and certain costs. The defendants' motion to dismiss was granted and all
parties and claims were dismissed with prejudice on December 11, 2012. The plaintiff filed a timely notice of appeal on February 8, 2013. No
appeal dates have been set.
Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10-K