Plumbers' & Pipefitters' Local #562 Supplemental Plan & Trust et al v. J.P. Morgan Acceptance Corporation I et al

Filing 158

ORDER granting in part and denying in part 129 Motion to Intervene. IPERS' motion to intervene is granted pursuant to the limits explained in this Order. Ordered by Judge Edward R. Korman on 8/23/2012. (Schwenk, Andrew)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
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PLUMBERS’ & PIPEFITTERS’ LOCAL #562 :
SUPPLEMENTAL PLAN & TRUST, et al.,
:
:
Plaintiffs,
:
:
- against :
:
J.P.
MORGAN
ACCEPTANCE :
CORPORATION I, et al.,
:
:
Defendants.
:
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NOT FOR PUBLICATION

ORDER

No. 08 CV 1713 (ERK) (WDW)

KORMAN, District Judge.
Iowa Public Employees’ Retirement System (“IPERS”), the manager of a trust fund for
the benefit of Iowa public employees, moves to intervene as an additional named plaintiff in this
case. IPERS intends to represent itself and others who purchased twelve Certificates, under
which claims were originally included in this putative class action but dismissed for lack of
standing by this court’s December 13, 2011 order.1
IPERS is entitled to intervention as of right under Fed. R. Civ. Pro. 24(a)(2). See New
York News, Inc. v. Kheel, 972 F.2d 482, 485 (2d Cir. 1992). Moreover, its claims are timely
pursuant to my Order of December 13, 2011, ECF No. 117, in which I held that the relevant
statute of limitations, codified at 15 U.S.C. § 77m, was tolled upon the filing of this putative
class action by the Lead Plaintiff. This issue is pending before the Second Circuit now, see In re
IndyMac Mortgage-Backed Sec. Litig., No. 11-2998 (2d Cir., filed Jul. 21, 2011), and I will
revisit the issue, if necessary, in light of the Second Circuit’s ruling.
1

The twelve Certificates (the “IPERS Certificates”) are JPMMT 2007-S1 2A22, JPMMT 2007S1 1A2, JPMMT 2007-A2 2A3, JPMMT 2007-A2-2A2, JPMMT 2007-A2 1A1, JPMAC 2007CH2 MV1, JPMAC 2007-CH1 AF2, JPMMT 2006-A5 3A6, JPMMT 2006-A4 1A4, JPMMT
2006-A4 1A2, JPMMT 2006-A3 5A1, and JPMMT 2006-A6 2A4L.
1

Nevertheless, I observe that IPERS alleges causes of action under section 12(a)(2) of the
Securities Act of 1933. See 15 U.S.C. § 77l(a). Section 12(a)(2), however, “‘imposes liability
on only the buyer’s immediate seller.’” Cortec Indus., Inc. v. Sum Holding L.P., 949 F.2d 42, 49
(2d Cir. 1991) (quoting Pinter v. Dahl, 486 U.S. 622, 643-44 (1988)). Here, IPERS only alleges
that it purchased eight of its twelve Certificates directly from a named defendant in this case.
Thus, IPERS may only intervene in claims under section 12(a)(2) for those eight Certificates.2
SO ORDERED.
Brooklyn, New York
August 23, 2012

Edward R. Korman
Edward R. Korman
Senior United States District Judge

2

JPMMT 2007-A2-2A2, JPMMT 2007-A2 1A1, JPMAC 2007-CH2 MV1, JPMAC 2007-CH1
AF2, JPMMT 2006-A5 3A6, JPMMT 2006-A4 1A2, JPMMT 2006-A3 5A1, and JPMMT 2006A6 2A4L.
2