Simmons Hanly Conroy, along with co-counsel in Illinois and California, has obtained a favorable ruling in the United States Court of Appeals for the Ninth Circuit on behalf of homeowners defrauded by eight major real estate developers during the housing bubble. The lawsuits, brought on behalf of qualified buyers in new developments, allege that the homebuilding companies concealed and misrepresented that they were filling the neighborhoods they were building with unqualified borrowers who would not be able to withstand any market downturn. As a result, qualified homeowners paid more for their homes than they should have and now live in neighborhoods littered with foreclosures; their homes have significantly less value than they were led to believe. The district court had dismissed the eight cases at the pleading stage, but on September 21, 2011, the Ninth Circuit reversed and reinstated the claims. Andrea Bierstein argued the case in the Ninth Circuit.
Please click here for a copy of the Court’s decision.