Wells Fargo Free of Lawsuit Over 2012 Lifetrade Default Deal

Investors in now-defunct Lifetrade life settlement funds lack evidence to pursue claims against Wells Fargo Bank NA at trial for its actions after Lifetrade defaulted on loans, a federal court ruled.

Wells Fargo is entitled to summary judgment in its favor, Judge J. Paul Oetken said Thursday for the US District Court for the Southern District of New York, releasing the company from long-running litigation.

The suit stems from Wells Fargo’s decision not to renew loans to Lifetrade in 2009. When the existing Wells Fargo loans came due in 2012, Lifetrade still hadn’t obtained alternative financing and defaulted on its ...