Ohio AG sues Ally Financial over foreclosures

AP - Ohio's attorney general is suing Ally Financial Inc. and its GMAC Mortgage division, alleging the company violated state fraud laws in handling foreclosure cases.

Ally Financial and its subsidiary GMAC Mortgage are being sued by the Ohio Attorney General for allegedly submitting fraudulent documents in hundreds of foreclosure cases across the state.

Reuters - Fallout over GMAC Mortgage's foreclosure practices deepened on Tuesday as Ohio's top law enforcement official asked courts in that state to review all foreclosure cases involving the Ally Financial Inc unit.

AP - Ohio Attorney General Richard Cordray plans to announce a lawsuit against a national mortgage company, alleging fraud that could involve hundreds of foreclosures in the state.

Ohio's attorney general is suing Bank of America on behalf of shareholders in some of the state's pension plans. He says the bank misled shareholders during its acquisition of Merrill Lynch, a move that cost the pension plans tens of millions of dollars. Business experts are watching this lawsuit carefully because, if the state wins, it could open the floodgates for other shareholders to file similar litigation.

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