BofA, Principal Financial Get Some Ponzi Scheme Claims Tossed

Bank of America NA and Principal Financial Group Inc. dislodged claims they aided fraud because allegations about the underlying conduct fall short under Florida law, a federal court ruled.

The alleged fraudulent misrepresentation amounts to a refusal to perform a contract, which isn’t actionable, the US District Court for the Southern District of Florida said July 11. But investors’ aiding and abetting claims against insurer Principal Financial that are related to other claims—including civil theft, unjust enrichment, and breach of fiduciary duties—survive Principal’s effort to dismiss them, Judge Rodney Smith said.

• The investors allege that Thomas Straub, who was a ...