JPMorgan, Barclays, Fifth Third Defeat Tricolor Fraud Suit (1)

JPMorgan Chase & Co., Barclays Plc and Fifth Third Bancorp won dismissal of a fraud lawsuit filed by holders of notes issued by Tricolor Holdings, the bankrupt subprime auto lender.

US District Judge Jed Rakoff on Wednesday dismissed the suit brought by several investment firms, including One William Street Capital Management and Janus Henderson Group Plc., that collectively hold more than $230 million in Tricolor notes.

Rakoff issued a one-page ruling, saying he would explain his reasoning in a later opinion.

A Tricolor dealership in Houston in 2025.

Photographer: Mark Felix/Bloomberg

In their lawsuit, the noteholders claimed the banks ignored numerous warning signs of fraud ahead ...