JPMorgan Fails to Shed Claims in American Dream Mall Lender Suit

JPMorgan Chase Bank will have to face claims it engaged in a scheme to strip junior lenders that helped bankroll New Jersey’s American Dream mall of their ability to be repaid for their loan, a Manhattan federal court ruled Thursday.

“This is a ‘classic pocketbook injury’ sufficient to confer standing,” Judge John Koeltl of the US District Court for the Southern District of New York wrote in his opinion.

At issue is a 2021 deal in which JPMorgan granted an extension on the mall’s debt, which stripped the junior lenders of their collateral.

Koeltl denied JPMorgan’s motion to dismiss ...