In a recent development, a California judge has permanently dismissed the negligence claim brought forward by the Girardi Keese bankruptcy trustee in a lawsuit accusing Western Alliance Bank of assisting with the law firm’s fraud.
The trustee’s lawsuit outlined federal regulations and obligations imposed on banks but failed to provide any presiding authority that permits a private right of action, the judge noted last Tuesday. Due to this factor, the negligence claim couldn’t stand in the court.
Further information regarding this case has been reported on Law360.