JPMorgan Fails to Dodge Wells Fargo Suit Over Defaulted Loan

JPMorgan Chase & Co. lost its bid to knock out Wells Fargo & Co.'s breach-of-contract case over a defaulted $481 million commercial real estate loan.

Wells Fargo’s allegations that the largest US bank allowed the loan to move forward despite knowing financial statements distributed to investors were false sufficed to support its claim, US District Court for the Southern District of New York Judge Dale E. Ho ruled Monday.

JPMorgan issued the loan—for which Wells Fargo served as trustee—in 2019 as part of a Manhattan real estate company’s purchase of 43 multifamily properties across 10 states, according to Wells Fargo’s ...