Merrill Lynch Secures Judgment on the Pleadings in RMBS Suit

Skadden secured a judgment on the pleadings in favor of Merrill Lynch Pierce Fenner & Smith Inc. in a lawsuit brought by the Federal Deposit Insurance Corp. on behalf of defunct Guaranty Bank concerning residential mortgage-backed securities Guaranty purchased from Merrill Lynch as well as numerous other banks also named as defendants. On August 18, Judge Sam Sparks of the U.S. District Court for the Western District of Texas found the FDIC’s claims are time-barred by the Texas Securities Act’s five-year statute of repose.