Allstate Corp. sued Citigroup Inc. and Deutsche Bank AG Friday, accusing the banks of misrepresenting risks on more than $385 million of mortgage securities it bought.
Allstate, the largest publicly traded U.S. home and auto insurer, has filed similar lawsuits against Bank of America Corp. and JPMorgan Chase & Co.
In complaints filed with the New York State Supreme Court in Manhattan, Allstate said it suffered “significant losses” after buying more than $200 million of mortgage-backed securities from Citigroup and more than $185 million from Deutsche Bank.
Allstate is one of many companies to sue lenders for allegedly misleading them about the safety of mortgage debt.
