Banking
Apr. 1, 2024
Judge refuses to dismiss lawsuits over banks’ robo-resetting
The dispute stems from the state of California’s hiring of the banks as remarketing agents, where they were accused of widespread fraud and collusion in the fees they charge and interest rates they set for variable rate, tax-exempt bonds.
A judge declined Friday to dismiss a motion for summary adjudication from eight of the nation’s biggest banks after attorneys from an ex rel plaintiff suing on behalf of the state of California argued that the statute of limitations did not expire on the claims that the financial institutions operated “robo-resetting” scheme.
During Friday’s hearing, Superior Court Judge Ethan P. Schulman disagreed with the attorneys for Edelweiss Fund LLC,...