Blue Cross fails with new trial motion
06 October 2014 Minnesota
Image: Shutterstock
Health plan provider Blue Cross’s request for a new trial in its case against Wells Fargo has been rejected.
US District Court for the District of Minnesota Judge Donovan Frank dismissed Blue Cross’s motion for a new trial over allegations that Wells Fargo breached its fiduciary duty on 2 October.
In March, a jury found that the bank did not breach a fiduciary duty to Blue Cross and the other plaintiffs.
Wells Fargo did not provide false information or use a deceptive practice in the course of selling the securities lending programme, nor did it knowingly misrepresent the true quality of the securities lending programme or its collateral investments.
Blue Cross asked the court to throw out the jury’s verdict and order a new trial, but the health plan provider failed to justify its request.
Judge Frank said: “The court concludes that the verdict of the jury, and the court’s findings, were not without an evidentiary basis. Although reasonable persons could differ regarding the conclusions to be drawn from the evidence presented, the jury’s verdict was not so contrary to the evidence as to amount to a miscarriage of justice. The court also separately concludes that the court’s instructions to the jury were neither erroneous nor misleading.”
“Moreover, to the extent plaintiffs allege misconduct on the part of defence counsel and that they were prejudiced by the exclusion of deposition testimony, the court finds such arguments are without merit.”
In a statement issued in March, Wells Fargo said: “Our conservative approach was effective, as the plaintiffs in Wells Fargo securities lending programme had minimal losses averaging approximately three percent at the same time that the markets were down up to 50 percent during the height of the financial crisis.”
Blue Cross has 30 days to file an appeal with the US Court of Appeals for the Eight Circuit.
Wells Fargo received final approval from the Minnesota district court in August for a $62.5 million settlement of a separate class action over its securities lending programme.
US District Court for the District of Minnesota Judge Donovan Frank dismissed Blue Cross’s motion for a new trial over allegations that Wells Fargo breached its fiduciary duty on 2 October.
In March, a jury found that the bank did not breach a fiduciary duty to Blue Cross and the other plaintiffs.
Wells Fargo did not provide false information or use a deceptive practice in the course of selling the securities lending programme, nor did it knowingly misrepresent the true quality of the securities lending programme or its collateral investments.
Blue Cross asked the court to throw out the jury’s verdict and order a new trial, but the health plan provider failed to justify its request.
Judge Frank said: “The court concludes that the verdict of the jury, and the court’s findings, were not without an evidentiary basis. Although reasonable persons could differ regarding the conclusions to be drawn from the evidence presented, the jury’s verdict was not so contrary to the evidence as to amount to a miscarriage of justice. The court also separately concludes that the court’s instructions to the jury were neither erroneous nor misleading.”
“Moreover, to the extent plaintiffs allege misconduct on the part of defence counsel and that they were prejudiced by the exclusion of deposition testimony, the court finds such arguments are without merit.”
In a statement issued in March, Wells Fargo said: “Our conservative approach was effective, as the plaintiffs in Wells Fargo securities lending programme had minimal losses averaging approximately three percent at the same time that the markets were down up to 50 percent during the height of the financial crisis.”
Blue Cross has 30 days to file an appeal with the US Court of Appeals for the Eight Circuit.
Wells Fargo received final approval from the Minnesota district court in August for a $62.5 million settlement of a separate class action over its securities lending programme.
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