Public Event Detail
JPMorgan, Barclays, Fifth Third defeat lawsuit over missed 'red flags' at Tricolor
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Event summary
JPMorgan Chase, Barclays, and Fifth Third have won the dismissal of a lawsuit filed by investors who claimed the banks overlooked "giant red flags" at the now-bankrupt subprime auto lender Tricolor. U.S. District Judge Jed Rakoff dismissed the case, and investors had accused the banks of facilitating a "Ponzi-like fraud" by financing and securitizing Tricolor's auto loans despite audits revealing inaccurate reporting and misdirected cash flow. Two former Tricolor executives have been indicted for fraud related to falsifying loan data and double-pledging collateral.