McKool Smith client CXA, an investor in residential mortgage-backed securities, has objected to the U.S. Securities and Exchange Commission’s revised plan to distribute a $75 million judgment against J.P. Morgan Securities LLC for hiding delinquent loans, saying the plan leaves out the majority of injured investors. Law360 explains that in 2012, JPMorgan agreed to pay $297 million to settle various alleged securities violations, with $75 million quelling claims it hid delinquent loans in one RMBS trust. CXA stated that the SEC’s plan to distribute the $75 million wrongly cut out investors that could not have known about the fraud until the SEC filed its suit. CXA previously objected to the SEC’s original distribution plan, which the Court rejected in January 2017. CXA is represented by New York Principal Robert Scheef and Lawrence Stierhoff.
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