Virginia Sues 13 Banks for $1.15 Billion

September 17, 2014

A lawsuit filed by Virginia’s attorney general seeks to extract $1.15 billion from 13 big banks and financial firms, some of whom have recently paid out huge settlements to the DOJ.

The lawsuit alleges that the banks and financial institutions “defrauded the state by selling shoddy residential mortgage securities to Virginia’s public employee retirement fund.” The banks allegedly packaged high-risk mortgage securities as Triple-A rated investments and thereby misled the Virginia Retirement System as to the value of the loans.

Attorney General Mark Herring characterized the banks as having “lied to Virginia.”

Read the full story here.