Citigroup (C), Deutsche Bank (DB) Being Sued by Allstate (ALL)

Allstate (NYSE:ALL) has added banking giants Citigroup (NYSE:C) and Deutsche Bank (NYSE:DB) to the list of financial institutions they're suing. On February 15 they filed a lawsuit against JPMorgan (NYSE:JPM).

All of the complaints against the banks mentioned above center on allegations they fraudulently sold Allstate hundreds of millions in mortgage-backed securities.

Filed in New York state Supreme Court in Manhattan, Allstate is seeking to recover the lost market value of the securities, along with principal and interest payments.

In the complaint Alltate said, “Allstate was made to believe it was buying highly rated, safe securities. Defendants knew the pools were toxic mixes of loans extended to borrowers who could not afford the properties and thus were highly likely to default.”

Allstate said they acquired over $200 million of these securities from Citibank, and approximately $185 million from Deutsche Bank.

The suit filed against JPMorgan was for over $700 million in mortgage- backed securities.