JPMorgan, BNY Suit Over $36M Hospital Bonds Trimmed

Law360, New York (October 31, 2012, 6:07 PM EDT) -- A Pennsylvania federal judge on Wednesday pared negligence claims from a class action accusing JP Morgan Trust Co. NA and Bank of New York Mellon Trust Co. of improperly handling $36 million in hospital bonds, saying the case could continue with breach of contract and other claims.

The banks argued that Lower Bucks Hospital bondholders couldn’t sue over losses allegedly caused by the banks’ failure to keep updated financial records, citing a settlement reached when LBH declared bankruptcy. U.S. District Judge Legrome D. Davis disagreed, saying...
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