Stichting Pensioenfonds ABP, Heerlen, Netherlands, sued J.P. Morgan Chase & Co., alleging violations of securities laws and fraud involving sales of residential mortgage-backed securities.
The suit, filed in New York State Supreme Court in Manhattan on Thursday, accused J.P. Morgan Chase of negligent misrepresentation, alleging the sales were based on false and misleading statements. The damages should be determined at trial, according to the suit.
“ABP purchased securities that were far riskier than had been represented, backed by mortgage loans worth significantly less than had been represented and that had been made by borrowers who were much less creditworthy than had been represented,” the €242 billion ($323.5 billion) pension fund said in the lawsuit.
Jennifer Zuccarelli, a spokeswoman for J.P. Morgan, declined to comment about the lawsuit.
ABP also sued Deutsche Bank over similar allegations in New York State Supreme Court in September.