9th Circ. Affirms Class In BNY Suit Over Ponzi Scheme

Law360, New York (October 19, 2011, 4:05 PM EDT) -- The Ninth Circuit on Tuesday denied Bank of New York Mellon Corp. and Wells Fargo Bank NA’s bid to challenge class certification for investors accusing them of breach of contract for allegedly failing to prevent Medical Capital Holdings Inc. from misappropriating millions.

BNY Mellon and Wells Fargo had sought permission to appeal a California federal judge's July 26 order granting class certification to the plaintiffs, who implicate the banks in a Ponzi scheme allegedly perpetrated by Medical Capital.

“It's a significant decision because it represents the...
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