Wells Fargo Wins Early Exit From $163M CDO Fraud Suit

Law360 (September 17, 2019, 10:48 PM EDT) -- A New York federal judge on Tuesday granted a request by Wells Fargo Securities LLC for an early exit from a $163 million suit that accused the Wall Street titan of allowing a hedge fund to control collateralized debt obligations that the fund was simultaneously betting against.

U.S. District Judge Paul Crotty said Loreley Financing, a group of special-purpose entities based in the Channel Islands, hadn't shown that Wachovia Bank, which has since been acquired by Wells Fargo, had actually made any false statements regarding the financial instruments.

"The court finds that there is simply not evidence that Wachovia misrepresented the...

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