Wells Fargo Securities and BNP Paribas obtain Second Circuit affirmation of summary judgment win in securities fraud suit
Client(s) Wells Fargo Bank, National Association; BNP Paribas
Jones Day defended Wells Fargo Securities, LLC, as successor to Wachovia Capital Markets LLC, and BNP Paribas, as successor to Fortis Securities LLC, who were involved in placing a CDO called Grand Avenue CDO II (Grand Avenue). The plaintiff, LBBW Luxemburg SA (LBBW), alleged that the defendants fraudulently induced it to purchase $40 million of the CDO’s senior notes. LBBW asserted claims for common law fraud, constructive fraud, breach of fiduciary duty, negligent misrepresentation, and breach of contract. On March 30, 2017, the District Court granted the defendants’ motions for summary judgment in full, dismissing all claims and all parties. U.S. District Judge Paul Oetken held that the plaintiff lacked standing to sue and, alternatively, that the undisputed evidence did not support LBBW’s allegations.
LBBW appealed to the Second Circuit, which summarily affirmed Judge Oetken’s decision. The court agreed that the undisputed record supported the defendants’ actions and left LBBW with no viable claim.
LBBW Luxemburg S.A. v. Wells Fargo Securities, LLC, No. 17-01259 (2d Cir.); LBBW Luxemburg S.A. v. Wells Fargo Securities, f/k/a Wachovia Capital Markets LLC, et al., No. 1:12-cv-07311 (S.D.N.Y.)
