$180 CDO Claim Against Credit Agricole Dismissed as Time-Barred

more+
less-

On August 31, Judge Robert W. Sweet of the U.S. District Court for the Southern District of New York dismissed with prejudice a $180 million suit brought by Intesa San Paolo (Intesa) against Credit Agricole Corporate and Investment Bank in connection with a collateralized debt obligation (CDO) backed by allegedly faulty mortgages. Intesa’s suit, alleging violations of §10(b) of the Securities and Exchange Act and state law claims of common law fraud and aiding and abetting fraud, was initially dismissed as time-barred earlier this year. Intesa filed a second amended complaint relying on allegedly false statements contained in more recent documents that it maintained were incorporated by reference into the CDO documents. The court found that the newly cited documents were not intended to be incorporated into the CDO, and as a result, Intesa’s §10(b) claim remained time-barred. The court also dismissed the state law claims, refusing to exercise supplemental jurisdiction over those claims. Opinion.