Cambridge Place Investment Partners, a fund based in Boston, Massachusetts, is suing US branches of the three British banks in a suit filed on Friday.
It is also targeting JP Morgan, Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch, UBS, Goldman Sachs, Morgan Stanley in what could turn out to be a test case for funds seeking restitution for their losses during the financial crisis
The lawsuit filed in Boston states that Barclays, HSBC and RBS all sold mortgage-backed securities based on "untrue statements".
Cambridge Place also blames the "mortgage originators" - the sub-prime lenders responsible for assessing borrowers - for bending the truth about the worth of the loans.
It says banks failed to conduct proper due diligence before packaging the loans into financial instruments and repeated untrue statements about the sub-prime mortgages in their prospectuses and sales pitches.
It also pointed out that the banks often had representatives on site at the mortgage lenders and gave them billions of dollars in credit. As a result, the suit alleges that they were "complicit in creating an environment of improper lending practices".
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