{"id":61087,"date":"2026-06-11T20:05:19","date_gmt":"2026-06-11T20:05:19","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/61087\/"},"modified":"2026-06-11T20:05:19","modified_gmt":"2026-06-11T20:05:19","slug":"jpmorgan-barclays-fifth-thirds-tricolor-suit-dismissed","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/61087\/","title":{"rendered":"JPMorgan, Barclays, Fifth Third\u2019s Tricolor suit dismissed"},"content":{"rendered":"\n

This story was originally published on Banking Dive<\/a>. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter<\/a>. <\/p>\n

A federal judge has dismissed an investor lawsuit<\/a> against JPMorgan Chase, Barclays and Fifth Third, which had accused the banks of missing \u201cgiant red flags\u201d ahead of subprime auto lender Tricolor\u2019s bankruptcy.<\/p>\n

Judge Jed Rakoff of the U.S. District Court for the Southern District of New York did not provide a specific reason for the dismissal,\u00a0only writing Tuesday that<\/a> \u201can opinion explaining the reason for this ruling will issue in due course.\u201d<\/p>\n

Plaintiffs, led by One William Street Capital Management,\u00a0alleged in February that Tricolor operated \u201ca blatant double-pledging scheme,\u201d where a single auto loan was pledged as collateral for multiple warehouse credit lines with different banks, and the company often continued doing so after that auto loan was sold into a securitization.<\/p>\n

Auditors made the banks aware of various issues in 2022 and 2024, plaintiffs alleged, and \u201cthe only question that remains is how the Defendants failed to stop it.\u201d<\/p>\n

\u201cRather than risk a massive loss on their warehouse lines and forfeit the millions of dollars of fees and income derived from Tricolor\u2019s fraudulent enterprise, Defendants responded by hiding what they had learned and sticking their heads in the sand to avoid learning more,\u201d investors alleged in the lawsuit.<\/p>\n

Barclays and Fifth Third declined to comment to Reuters<\/a>, and JPMorgan had no \u200bimmediate comment.<\/p>\n

Tricolor filed for bankruptcy in September, after which JPMorgan Chase<\/a>, Fifth Third<\/a> and Barclays each logged charge-offs well over $100 million.<\/p>\n

Tricolor CEO Daniel Chu and COO David Goodgame were both indicted in December<\/a> for allegedly defrauding creditors and lenders. Both men pleaded not guilty.<\/p>\n","protected":false},"excerpt":{"rendered":"This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free…\n","protected":false},"author":2,"featured_media":61088,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21264],"tags":[3343,29546,29552,29548,29545,29547,29551,29550,29549],"class_list":["post-61087","post","type-post","status-publish","format-standard","has-post-thumbnail","category-barclays","tag-barclays","tag-fifth-third","tag-investor-lawsuit","tag-jed-rakoff","tag-jpmorgan-chase","tag-one-william-street-capital-management","tag-southern-district-of-new-york","tag-tricolor","tag-u-s-district-court"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116733275546840282","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/61087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=61087"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/61087\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/61088"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=61087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=61087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=61087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}