Wells Fargo Can't Nix Bondholder Suit Over Lender's Default

Law360, New York (October 22, 2012, 7:13 PM EDT) -- Wells Fargo Bank NA on Monday lost its bid to toss a proposed class action alleging the bank breached its duties to bondholders by failing to take timely action after a subprime mortgage lender defaulted on at least $1.75 million in bond payments before its bankruptcy.

U.S. District Judge Catherine C. Blake ruled Monday that the bank can't yet dodge allegations that it breached its contract to KH Funding bondholders by neglecting to take timely action when KH stopped making its interest and principal payments in...
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