Minnesota Ameriquest Class Action Lawsuit
Lieff Cabraser serves as Plaintiffs' Lead Counsel for a certified class of Minnesota property owners who obtained mortgage loans from Ameriquest Mortgage Company.
December 2008 Update
The Plaintiffs and Ameriquest have reached a settlement in the Class Action case, Ricci, et al. v. Ameriquest Mortgage Company Mortgage Company, No. 05-2546, pending in the Fourth Judicial District Court, Hennepin County, Minnesota. On December 17, 2008, the Court held a Fairness Hearing and granted final approval to the Settlement, finding it to be "fair, reasonable, adequate, and in the best interests of the Settlement Class." [Click here to read a copy of the Court's Final Approval Order and Final Judgment.]
Previously, on September 17, 2008, the Court had held a preliminary fairness hearing to determine the reasonableness of the proposed settlement. [Click here for a copy of the Settlement Stipulation]. On September 18, 2008, the Honorable Lloyd Zimmerman had issued an Order stating that "the Settlement appears to be within the range of reasonableness of a settlement that could ultimately be given final approval by this court." [Click here for a copy of the Court's Order Preliminarily Approving Class Settlement and Notice Plan].
Court-approved Notice and a Court-approved Claim Form were mailed to Class Members on or before October 17, 2008. The Notice contains important information about your rights under the proposed Settlement and affects your legal rights. The information on this website is not a substitute for the information in the Court-approved Notice and Claim Form. Click here to read a copy of the Notice in original 6-page format or the shorter print format. You can view a copy of the Claim Form by clicking here. You must submit this Claim Form by February 14, 2009 in order to be eligible for benefits under the Settlement.
Frequently Asked Questions About the Lawsuit
1. What is this Class Action about?
This is a certified Class Action that arises from alleged violations of Minnesota Statutes §§325F.69 and 325F.68 (Prevention of Consumer Fraud Act); alleged violations of Minnesota Statute §325D.44 (Deceptive Trade Practices); and alleged Fraud by Concealment. The lawsuit claims that Ameriquest engaged in unlawful and unfair practices, such as charging higher-than-promised interest rates, improper discount points, and undisclosed prepayment penalties when it sold mortgage loans to borrowers in Minnesota.
Ameriquest denies it did anything wrong, denies Plaintiffs' allegations, denies that their loan origination practices violated any law, and denies that they financially harmed any of their customers.
2. Who may be eligible to receive Settlement Benefits?
According to the Court's Final Approval Order and Final Judgment, you may be eligible for benefits under the Settlement if you are a member of the following certified Class:
All persons (i) who presently own, or during the Class Period owned, property (including mobile homes) in Minnesota, and (ii) who entered into a mortgage loan transaction relating to such Minnesota property with Defendant at any time between February 17, 1999, and the present ("the Class.").
Excluded from this Class are any judicial officer assigned to this matter; Defendant; the parents, subsidiaries and affiliates, officers and directors of Defendant or any entity in which a Defendant has a controlling interest; and the legal representatives, successors, or assigns of any such excluded persons. Also excluded from this Class are all those who participated in the nationwide settlement with the Attorneys General including the Attorney General of Minnesota or who have otherwise released Defendant from claims raised in this action; those who previously opted-out of the or will opt out of the Class pursuant to the Settlement Stipulation.
3. What are the Terms of the Settlement?
The terms of the settlement are set forth in the Settlement Stipulation. A Court-Ordered Notice and Claim Form that also explain the terms of the Settlement was mailed to Class members on or before October 17, 2008. Click here to read a copy of the Notice in original 6-page format or the shorter print format. You can view a copy of the Claim Form by clicking here.
4. How do I get Settlement Benefits?
You must complete and mail in the Claim Form by February 14, 2009 to be eligible for benefits. The Claim Form was mailed to you along with Notice on October 17, 2008. You can obtain another copy of the Claim Form by clicking here.
Please note that the deadline for opting out of the Settlement has passed. If you are eligible to receive money, but do not mail your Claim Form on time, you will be barred from sharing in the distribution of the Settlement funds, but will be nonetheless subject to the Release (see Settlement Stipulation to view the full Release).
5. Why are the Attorneys for the Plaintiffs and the Class Recommending this Settlement?
Attorneys for the Plaintiffs and the Class recommend this Settlement because it provides real, substantial monetary benefits to the Class valued at $4,181,521, not including the additional value provided by Ameriquest's payment of attorneys' fees, costs, notice, and administration. Attorneys for the Plaintiffs and the Class believe that the monetary relief required by this Settlement is fair, reasonable and adequate.
This case has been extensively litigated for more than three years. Ameriquest and its attorneys have defended this case vigorously every step of the way. Based on the litigation so far and in the judgment of Attorneys for the Plaintiffs and the Class, who have extensive experience in such litigation, the Settlement is fair and reasonable in light of the risks, difficulties, delays, and uncertainties of trial and appeal. In particular, at trial, the Class would have had the burden of proof to establish liability and entitlement to relief.
Even if the Class obtained a favorable judgment at trial, there was a known risk that Ameriquest would file an appeal, resulting in a delay of payment to the Class, and/or the potential that the trial judgment would be reversed, or the amount of monetary relief to be paid to the Class reduced. Even if the Class had prevailed on appeal, Attorneys for the Plaintiffs and the Class and the Court received evidence regarding Ameriquest's financial condition suggesting that Ameriquest would not have the resources to satisfy such a judgment.
Under the Settlement described above, Class members will receive substantial benefits that are both immediate and certain, thus avoiding the many obstacles that might have prevented them from obtaining relief through trial. In light of both the substantial recovery and the magnitude and risks of the litigation being settled, and the legal standards set forth above, there can be little question that the Settlement serves the best interests of the named Plaintiffs and Class members.
6. How do I get more Information?
You can contact the Ricci v. Ameriquest Claims Administrator at 1-888-356-0269. Minnesota property owners with mortgage loans provided by Ameriquest that wish to obtain further information on the lawsuit are welcome to contact plaintiffs' counsel by clicking here.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP is a sixty-plus attorney law firm that has represented plaintiffs nationwide since 1972. We have offices in San Francisco, New York and Nashville. We represent plaintiffs in class and group actions and in individual lawsuits in cases involving substantial losses. For the last seven years, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation.
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