Investors Accuse Credit Agricole Of $70.5M CDO Fraud

Law360, New York (October 25, 2010, 4:55 PM EDT) -- Investors have lodged a complaint in New York state court accusing French bank Credit Agricole SA and its Calyon unit of inducing the purchase of $70.5 million in weak collateralized debt obligations designed to hurt investors and benefit a hedge fund.

A group of investment funds known as Loreley Financing filed the complaint in the New York Supreme Court on Friday, about four months after lodging an initial summons seeking rescission and damages.

Loreley says Calyon allowed hedge fund Magnetar Capital LLC to purposely select weak...
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