Judge Reverses BankAtlantic Loss In Fraud Case

Law360, New York (April 25, 2011, 10:58 PM EDT) -- A Florida federal judge on Monday overturned a jury's verdict that BankAmerica Bancorp Inc. should pay damages because its executives misled investors about the risk in the company's $530 million loan portfolio.

U.S. District Judge Ursula Ungaro's 112-page ruling was an upset for the plaintiffs that BankAtlantic's lawyers foresaw immediately after the verdict — the first in a securities fraud case springing from the financial crisis — came down in November. The case is the 12th securities fraud class action to go to trial since the...
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