JPMorgan wins dismissal of most Dexia mortgage claims
JPMorgan Chase & Co has won the dismissal of much of a lawsuit accusing it of misleading the Belgian-French bank Dexia SA into buying more than $1.6 billion of troubled mortgage debt.
In a two-page order made public on Wednesday U.S. District Judge Jed Rakoff in Manhattan dismissed the entire case apart from claims by Dexia's FSA Asset Management LLC unit over five certificates linked to residential mortgage-backed securities.
The lawsuit filed last year focused on securities created by JPMorgan and the former Bear Stearns Cos and Washington Mutual Inc, both of which the bank bought in 2008.
It said the defendants made fraudulent misrepresentations and omissions in offering documents for 65 certificates issued in 51 separate offerings.
Rakoff said he would explain his reasoning in an opinion to be issued in due course.
The case is Dexia SA/NV et al v. Bear Stearns & Co et al, U.S. District Court, Southern District of New York, No. 12-04761.
(Reporting by Nate Raymond and Jonathan Stempel in New York; Editing by Phil Berlowitz)