Quinn Emanuel Urquhart & Sullivan breached one more line of defense in the Federal Housing Finance Agency’s campaign against the banks at the heart of the subprime crisis.
On Monday, six months after she rejected a bid to dismiss the litigation on timeliness grounds, U.S. District Judge Denise Cote in Manhattan (See Profile) refused to dismiss the FHFA’s common law fraud claims against JPMorgan Chase and four other defendants. The ruling in Federal Housing Finance Agency v. JPMorgan Chase & Co., 11-cv-6188, is a big blow to the banks in the second-to-last round of dismissal motions still to be decided before discovery gets underway in all 16 consolidated cases, which allege federal securities violations and assorted flavors of fraud.
