The U.S. Court of Appeals for the Third Circuit ruled Tuesday that Wilmington Trust Co. was under no contractual obligation to prevent abuses that led a European commercial bank to lose a $168 million investment in 15 residential mortgage-backed securities trusts.

The ruling, from a three-judge panel of the Philadelphia-based appeals court, rejected IKB International S.A.’s bid to revive the breach-of-contract suit, which accused Wilmington Trust of standing “idly by” while other participants in the trusts drained them of their value.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]