Judge Reverses Dismissal of Chase Securities Suit

The legal battle between ""JPMorgan Chase"":http://www.jpmorganchase.com/corporate/Home/home.htm and Belgian-French bank ""Dexia SA"":http://www.dexia.com/EN/Pages/default.aspx is back on following the reversal of a decision to throw out much of the case.

[IMAGE] [COLUMN_BREAK]

U.S. District Judge Jed Rakoff went back on a previous decision to dismiss most of Dexia's claims against JPMorgan in a $774 million suit. According to a report from ""Reuters"":http://www.reuters.com/article/2013/05/18/us-jpmorgan-dexia-lawsuit-idUSBRE94G0TX20130518, the leftover claims amounted to about $5.7 million.

In reversing his decision, Rakoff noted that he didn't have the jurisdiction to grant a dismissal in the first place, citing an appeals court decision in a similar case involving American International Group (AIG) and Bank of America.

Dexia originally brought suit against JPMorgan in January 2012, alleging it was fraudulently convinced to purchase more than $1.6 billion of residential mortgage-backed securities that went bad. The company claims quality was misrepresented on 65 MBS purchased between 2005 and 2007 from JPMorgan, Bear Stearns, and Washington Mutual.