American Business Financial Services, Inc. Noteholders Litigation

Plaintiffs allege in the Second Amended Complaint (the "Complaint") that the Registration Statements were misleading and omitted material facts concerning ABFS' ability to repay the securities that Plaintiffs and the Class Members bought - subordinated debt securities, subordinated money market notes, unsecured investment notes or subordinated debentures (the "Notes"). Plaintiffs further allege that ABFS ceased making payments on the Notes, causing damage to Plaintiffs and the Class. Plaintiffs assert that they and the Class, as purchasers of the Notes during the Class Period, are entitled to money damages.

The Defendants deny these claims and deny any liability, wrongdoing or damages arising out of the conduct alleged in the Complaint, and assert certain defenses to the claims made in the Complaint. The Defendants specifically deny that the Registration Statements contained untrue statements of omissions of material fact.

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