Wells Fargo Can't Skirt MedCap Ponzi Class Action

Law360, New York (April 3, 2013, 10:29 PM EDT) -- Wells Fargo NA failed Tuesday to persuade a California federal court to toss a consolidated class action claiming it breached its contract with noteholders by handing out their funds to Medical Capital Holdings Inc. in MedCap's $1 billion Ponzi scheme.

U.S. District Judge David Carter partly denied the banking giant’s summary judgment bid, ruling he could not grant summary judgment on Wells Fargo’s argument that it did not have the obligation to notify investors of problems with the accounts until defaults occurred. He ruled that the...
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