Comerica Bank Trims Claims in Woodbridge Ponzi Investor Suit

Comerica Bank won’t have to face all claims in a suit accusing it of substantially assisting the perpetrators of the $1.2 billion Woodbridge Ponzi scheme after a federal district judge in California partially dismissed the case.

Investors who lost money to the scam argued that Comerica, which maintained all of Woodbridge Group of Companies LLC’s financial accounts, knew about the scheme and ignored red flags in order to keep Woodbridge as a customer. Federal banking law preempts some claims to a certain extent, but others can move forward, the U.S. District Court for the Central District of California said Wednesday. ...