JPMorgan to face Wells Fargo suit over $481 million loan

A federal judge in Manhattan has ruled that JPMorgan Chase & Co. must face a breach of contract lawsuit brought by Wells Fargo & Company regarding a troubled $481 million commercial real estate loan. The legal action seeks to recover significant losses for investors following a default on the loan, which was originally issued to the Chetrit Group in 2019.

U.S. District Judge Dale Ho stated that the plaintiff adequately alleged that the bank was aware of an event of default by the Manhattan-based developer. The loan was intended for the purchase of 43 multifamily properties, encompassing 8,671 apartments across 10 states in the United States. According to the complaint, the borrower defaulted in 2022, owing more than $285 million at the time the legal action was initiated last March.