Court Won't Trim Claims BofA Botched Bankruptcy Report

Law360 (April 20, 2021, 5:56 PM EDT) -- A California federal judge Tuesday rejected Bank of America's bid to dismiss claims it violated state law when it incorrectly reported that a customer had declared bankruptcy, saying a failure to do a reasonable cross-check of his information would have violated California law.

In her ruling, U.S. District Judge Cynthia Bashant said that while it is too early to say if Bank of America's failure to double-check if William Norman Brooks III had indeed filed for bankruptcy was reasonable or not, the fact there was publicly available information the bank could have looked at to avoid the error means Brooks has...

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