Credit Agricole Wins Dismissal of Intesa CDO Fraud SuitJoel Rosenblatt
Credit Agricole SA, France’s third-biggest lender, won dismissal of lawsuit brought by Intesa Sanpaolo SpA over claims it was defrauded in a collateralized debt obligation investment.
U.S. District Judge Robert W. Sweet in Manhattan yesterday ruled that Intesa’s claims were time-barred, having been filed “exactly one month too late.” Sweet said Intesa could file another complaint within 20 days.
Intesa claimed in the suit filed last year that it lost $180 million after Credit Agricole’s Calyon unit induced it in 2006 to invest in a CDO secretly structured by Magnetar Capital LLC to lose money.
Intesa argued Calyon told investors that the CDO -- known as Pyxis ABS CDO 2006-1 -- was based on residential mortgage-backed securities that had been chosen by an independent investment firm, Putnam Advisory Co., when the underlying securities were really selected by Magnetar.
Putnam was also named as a defendant in the case.
Intesa, based in Turin, Italy, and formerly known as Banca Intesa SpA, seeks unspecified money damages in its fraud lawsuit.
Philippe Selendy, a lawyer for Intesa, didn’t immediately return a call yesterday seeking comment on the ruling.
The case is Intesa v. Credit Agricole, 12-cv-02683, U.S. District Court, Southern District of New York (Manhattan).