Securities Law

Large agricultural company brought action against a broker resulting from sale of a SIV-Lite note which was backed by sub-prime mortgages. Originally rated A1+/PI, the commercial paper was downgraded the week after the sale and the issuer defaulted. The purchaser claimed it was not a QIB, that the Indiana Securities was breached, as were fiduciary duties. The suit settled in part based upon an assignment of the note to the broker.