Suit Against Barclays Over $400M CDO Goes Forward

Law360, New York (March 20, 2012, 7:21 PM EDT) -- A federal judge on Tuesday refused to dismiss most of a lawsuit that alleges Barclays Bank PLC packed a collateralized debt obligation with junk and shorted it, saying the plaintiffs have made a plausible fraud claim about the $400 million sale.

U.S. District Judge Louis L. Stanton ruled that most of an institutional investor's claims against Barclays and investment adviser State Street Global Advisors can go forward despite the defendants' argument that they were transparent about what went into the CDO, known as Markov I....
To view the full article, register now.