Judge Katherine Failla on March 30 allowed five lawsuits against Wells Fargo & Co. to proceed, in connection with the latter's alleged failures as a trustee, Reuters reported the same day.
The plaintiffs include funds from BlackRock Inc., Pacific Investment Management Co. LLC, Prudential Financial Inc. and TIAA-CREF, as well as Royal Park Investments SA/NV, the National Credit Union Administration Board, Phoenix Light SF Ltd., and Commerzbank AG, according to the newswire. They claim breach of contract and conflict of interest and say that Wells, as a trustee overseeing residential mortgage-backed securities, did little to force lenders to fix or repurchase the bad loans that backed the plaintiffs' purchased RMBS. They also say Wells Fargo's own documents show that the bank had been aware of loan defects.
Failla, however, dismissed claims of general negligence and the allegation that Wells violated a related New York state law, Reuters noted.