Allstate Can't Bump JPMorgan MBS Suit To State Court

Law360, New York (March 28, 2012, 3:48 PM EDT) -- Allstate Insurance Co.'s suit alleging JPMorgan Chase Bank NA downplayed the risks of more than $700 million in mortgage-backed securities must remain in federal court, a New York state judge ruled Tuesday, denying the insurer's bid to send the case to state court.

U.S. District Judge Deborah A. Batts said her court had jurisdiction over claims the bank misled Allstate about the soundness of the securities. The suit, filed in February 2011 in New York Supreme Court, also named subsidiaries of Washington Mutual Bank, which was...
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