Wells Fargo Wins Jury Verdict In Mortgage Kickback Suit

Law360, Los Angeles (June 7, 2013, 4:05 PM EDT) -- A Maryland federal jury on Friday let Wells Fargo Bank NA and off the hook in a class action claiming it created a front organization funneling mortgage referrals from Long & Foster Real Estate Inc. to Wells Fargo in exchange for kickbacks.

The class, which consisted of Prosperity Mortgage Co. customers, argued the alleged front organization was designed to circumvent consumer protection laws. But the jury returned a verdict in favor of the defendants, finding that Prosperity wasn't a sham.

Prosperity, formed by a 1993 joint...
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