Judge Sides With SunTrust In Ponzi Class Action

Law360, New York (June 4, 2010, 4:12 PM EDT) -- SunTrust Banks Inc. has initially escaped liability in a class action alleging it participated in a Ponzi scheme related to tax-deferred exchanges with a LandAmerica Financial Group Inc. subsidiary, bilking customers of $191 million.

Judge Joseph Anderson Jr. of the U.S. District Court for the District of South Carolina threw out all claims against SunTrust on Wednesday, saying the plaintiffs failed to adequately show SunTrust actually knew of the alleged wrongdoing or agreed to conspire with the subsidiary.

The judge gave the plaintiffs until July 19...
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