Credit Agricole Slapped With $50M CDO Fraud Suit

Law360, New York (June 22, 2010, 7:05 PM EDT) -- Two related investment funds are seeking the return of $50 million paid to Credit Agricole SA for a collateralized debt obligation that was allegedly offered fraudulently.

Loreley Financing (Jersey) No. 31 Ltd. and Loreley Financing (Jersey) No. 32 Ltd. filed a summons in the Supreme Court of the State of New York on Friday against the bank's arms Credit Agricole Corporate and Investment Bank and Credit Agricole Securities (USA) Inc., though no complaint has yet been filed.

The lawsuit alleges fraud by the defendants in the...
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