First Republic Bank Brass, Auditor Dodge Investor Class Suit (2)

First Republic Bank‘s former officers and auditor escaped a proposed class action after a federal judge ruled the investors didn’t exhaust administrative options with the collapsed bank’s receiver first.

The Financial Institutions Reform, Recovery, and Enforcement Act requires that once the Federal Deposit Insurance Corp. assumed receivership of a bank, claimants must exhaust those remedies before suing in court, said Judge Araceli Martínez-Olguín Monday while tossing the suit.

But the investor who first sued in this action didn’t file a claim with the FDIC at all, and the Swedish pension fund serving as lead plaintiff didn’t wait for resolution ...