Class Actions Consolidated Against E*Trade

MANHATTAN (CN) - U.S. District Judge Robert Sweet consolidated five class action securities complaints against E*Trade Financial Corp. and appointed Brower Piven lead counsel, and Levi & Korsinsky co-lead counsel. The complaints claim that E*Trade began purchasing mortgages, home-equity loans and other mortgage related assets in 2003, and failed to disclose material adverse facts as losses from this accumulated.

The consolidated class action is on behalf of people who bought shares in E*Trade between April 20, 2006 and Nov. 9, 2007. They claim E*Trade violated securities laws by failing to reveal that it was suffering from increased delinquencies in its mortgage and home equity portfolios, that it had failed to set aside adequate reserves to cover the losses, and that it would therefore be forced to write off $340 million for this.

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