Financial Firms, PwC Fight Claims Over Colonial Fraud

Law360, New York (August 2, 2011, 6:14 PM EDT) -- A bevy of Wall Street firms that sold Colonial BancGroup Inc. securities and its former auditor PricewaterhouseCoopers LLP tried to snuff a putative class action in Alabama on Monday alleging they had a role in a massive fraud that toppled Colonial.

Underwriter defendants including Banc of America Securities LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc. moved to dismiss claims they misled Colonial investors about the quality of Colonial Bank's mortgage portfolio and business practices.

“The first amended complaint should be dismissed because...
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