The Sixth Circuit has affirmed dismissal of a public nuisance case brought by the City of Cleveland against various companies that financed subprime mortgages in pdf-City of Cleveland v. Ameriquest Mortgage Securities, Case No. 09-3608 (July 27, 2010).
Given the recent increase of lawsuits against entities who are farther removed from the plaintiff’s ultimate injury but are alleged to be the underlying cause of injury, the Court’s decision provides further guidance on how far plaintiffs can reach for potential defendants or causes of action.
In the case, the City of Cleveland sued a number of high-profile companies that provided financing to subprime mortgage lenders and created mortgage-backed securities for public nuisance. The City’s theory was that by...
