JPMorgan Chase & Co. lost a motion to dismiss a suit filed by Syncora Guarantee Inc. accusing Bear Stearns & Co. of making false and misleading statements connected with a mortgage-backed securities transaction.
The bond insurer sued JPMorgan Securities LLC, formerly Bear Stearns, in New York state Supreme Court in Manhattan in June 2011 over the transaction, known as GreenPoint Mortgage Funding Trust 2007-HE1.
JPMorgan moved to dismiss the complaint, saying that Syncora already tried to litigate the claims in federal court in Manhattan. Justice Charles E. Ramos denied the motion, saying the state law claims being asserted in the suit aren’t within the jurisdiction of the federal court.
“Syncora, in this case, deserves its day in court against JPMorgan,” Ramos wrote in a ruling dated May 4.
Jennifer Zuccarelli, a spokewoman for JPMorgan, didn’t immediately respond to an e-mail seeking comment on the ruling.
The case is Syncora Guarantee Inc. v. JPMorgan Securities LLC, 651566/2011, New York state Supreme Court (Manhattan).