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Credit Agricole Wins Dismissal of Intesa CDO Fraud Lawsuit

FEB 14, 2013 11:46am ET
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Credit Agricole SA, France’s third-biggest lender, won dismissal of lawsuit brought by Intesa Sanpaolo SpA over claims it was defrauded in a collateralized debt obligation investment.

U.S. District Judge Robert W. Sweet in Manhattan yesterday ruled that Intesa’s claims were time-barred, having been filed “exactly one month too late.” Sweet said Intesa could file another complaint within 20 days.

Intesa claimed in the suit filed last year that it lost $180 million after Credit Agricole’s Calyon unit induced it in 2006 to invest in a CDO secretly structured by Magnetar Capital LLC to lose money.

Intesa argued Calyon told investors that the CDO—known as Pyxis ABS CDO 2006—was based on residential mortgage-backed securities that had been chosen by an independent investment firm, Putnam Advisory Co., when the underlying securities were really selected by Magnetar.

Putnam was also named as a defendant in the case.

Intesa, based in Turin, Italy, and formerly known as Banca Intesa SpA, seeks unspecified money damages in its fraud lawsuit.

Philippe Selendy, a lawyer for Intesa, didn’t immediately return a call yesterday seeking comment on the ruling.

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