Allstate Sues Another Lender, Credit Suisse, Over Mortgage Securities

By | March 1, 2011

Allstate Corp. on Monday sued Credit Suisse Group AG, accusing the Swiss bank of causing losses by hiding the risks on $232 million of mortgage securities it bought.

Allstate, the largest publicly traded U.S. home and auto insurer, has filed similar lawsuits against at least four other lenders: Bank of America Corp., Citigroup Inc., Deutsche Bank AG and JPMorgan Chase & Co.

The five lawsuits seek to recover losses that Allstate said it suffered on roughly $2.1 billion of securities.

Credit Suisse did not immediately return a call seeking a comment.

The case is Allstate Insurance Co et al v. Credit Suisse Securities (USA) LLC, New York State Supreme Court, New York County, No. 650547/2011.

(Reporting by Jonathan Stempel in New York; Editing by Phil Berlowitz)

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