New York's top court has rejected a request by French investors to reinstate their lawsuit over losing $43 million out of $50 million they put into two structured investment vehicles. WAMC’s Dave Lucas reports.
The investors claim Barclays Bank, Standard & Poor's and two management companies were complicit in leaving investors with plummeting securities shortly before the Wall Street collapse.
Oddo Asset Management says collateral managers Avendis Financial Services and Solent Capital conspired with Barclays in early 2007 to transfer subprime mortgage-backed securities from Barclays to the two vehicles and that S&P was complicit by confirming inflated note ratings for Golden Key Ltd. and Mainsail II Ltd.
The Court of Appeals says the managers had no fiduciary duty to the investors, so Barclays and S&P couldn't be liable for abetting any breach.
Dave Lucas, WAMC News.
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