2nd Circ. Mulls $163M CDO Fraud Suit Against Wells Fargo
By Andrew Scurria
Law360, New York (February 5, 2014, 7:52 PM ET) -- Lawyers for five Loreley Financing companies asked the Second Circuit on Wednesday for another shot at holding Wells Fargo Securities LLC liable for allegedly concealing that a hedge fund it relied on to shape two collateralized debt obligations was simultaneously betting against them.
A district court acted hastily in tossing claims that Wells Fargo hawked the complex investment vehicles without disclosing that hedge fund Magnetar Capital LLC had been given veto rights to choose the underlying collateral, according to the companies' attorney Sheron Korpus of Kasowitz...