Wells Fargo fails to end lawsuit over German bank WestLB CDO vehicle

(Reuters) – Wells Fargo & Co failed to persuade a U.S. judge to dismiss a lawsuit accusing it of mismanaging a collateralized debt obligation vehicle created by WestLB AG, a state-owned German bank that was dissolved after the 2008 financial crisis.

While dismissing several claims, U.S. District Judge Richard Sullivan in Manhattan said Wells Fargo must face claims by House of Europe Funding I Ltd, a Cayman Islands-based CDO issuer, that its oversight led to losses that could reach $163 million. The decision was made public on Tuesday, and is dated March 31.