Kansas Judge Consolidates Two NCUA Securities Fraud Suits
It’s not just the NCUA that is seeking to streamline the way it does business – U.S. District Judge Julie Robinson in Kansas has streamlined NCUA suits against Wall Street firms that sold losing securities to U.S. Central Federal Credit Union and Western Corporate Federal Credit Union.
Robinson granted June 1 a motion by defendant Wachovia Capital Markets that two lawsuits filed by the NCUA, which both include Wachovia as defendants, be consolidated for purposes of pretrial proceedings and trial.
“It is clear to this court that these cases contain common questions of face and law, and that consolidation would serve the interest of judicial efficiency,” Robinson wrote in court documents.
The judge also noted that in both cases, the defendants are claiming the same legal arguments for motions to dismiss, including whether the NCUA’s claims are barred by the statute of repose and statute of limitations.
The consolidation does not include another suit against J.P. Morgan that alleges Securities Act violations in connection with investments purchased by U.S. Central, WesCorp, Members United Corporate Federal Credit Union and Southwest Corporate Federal Credit Union.