Broker-Dealers Elude BNY Mellon, Wells Fargo In MedCap MDL

Law360, Los Angeles (January 23, 2012, 10:01 PM EST) -- Bank of New York Mellon Corp. and Wells Fargo Bank NA can't hold broker-dealers liable in a class action alleging the banks failed to prevent Medical Capital Holdings Inc. from embezzling investors’ money, a judge tentatively ruled Monday, saying California law bars their equitable indemnity claims.

“Perhaps the California Supreme Court or the California legislature will extend the law at some future date and, at that time, this court will be happy to enforce it,” U.S. District Judge David O. Carter wrote in a tentative decision...
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