BMO Wins Reversal of Jury Verdict in U.S. Lawsuit Against Bank

Court Dismisses Racketeering Claims, Upholds Verdict Dismissing Other Claims Against Bank

Important Takeaways:

• The Eighth Circuit Court of Appeals has reversed a jury verdict that found BMO responsible for racketeering.
• The court upheld the district court's dismissal of other claims against the bank.
• The decision is a significant victory for BMO and could have implications for other banks facing similar lawsuits.

BMO Financial Group has won a reversal of a jury verdict in a U.S. lawsuit against the bank. The Eighth Circuit Court of Appeals ruled that the district court erred in allowing the jury to consider racketeering claims against BMO.

The lawsuit was filed by a group of investors who alleged that BMO had engaged in a racketeering scheme to manipulate the price of certain mortgage-backed securities. The jury found BMO liable for racketeering and awarded the investors $1.2 billion in damages.

BMO appealed the verdict, arguing that the district court had erred in allowing the jury to consider racketeering claims. The Eighth Circuit Court of Appeals agreed with BMO, ruling that the investors had failed to present sufficient evidence to support their racketeering claims.

The court also upheld the district court's dismissal of other claims against BMO, including claims of fraud, negligence, and breach of contract. The court found that the investors had failed to state a claim upon which relief could be granted.

The decision is a significant victory for BMO and could have implications for other banks facing similar lawsuits. The decision suggests that it will be difficult for investors to succeed in racketeering claims against banks.

BMO's victory is a reminder that banks are not immune from lawsuits, but it also shows that banks can successfully defend themselves against unfounded claims.