The borrowers' claims alleged RICO violations based on breaches of pooling and servicing agreements to which the banks, but not the borrowers, were a party. The U.S. District Court for the Southern District of New York dismissed the complaints based on the plaintiffs' lack of standing, and the U.S. Court of Appeals for the Second Circuit affirmed. Dorsey argued the case for the banks in both courts.
Civil RICO complaint dismissed against five national banks
Five national banks that served as the trustees of residential mortgage-backed securities trusts were sued by borrowers in foreclosure.