UPDATE 1-FICO suit against Experian, TransUnion to proceed

* FICO in settlement talks with Experian, TransUnion

* Antitrust, false advertising claims dismissed-court filing

* Trademark-related claims to proceed (Adds FICO CEO's comments, byline, details)

By Paritosh Bansal

NEW YORK, July 26 (Reuters) - A lawsuit by Fair Isaac Corp FIC.N, which provides "FICO" credit scores used by millions of Americans, can proceed against two major credit-reporting agencies but on a narrower set of claims, according to a court filing.

Fair Isaac is also in settlement talks with the agencies, Experian Plc (EXPN.L) and TransUnion LLC, Fair Isaac Chief Executive Mark Greene told Reuters in an interview.

U.S. District Judge Ann Montgomery denied requests by Experian, TransUnion and VantageScore Solutions to dismiss Fair Isaac's claims related to trademark but threw out some other allegations, including those around antitrust and false advertising, according to a court filing on Friday.

"What we really want to make sure is that consumers understand how their scores are being treated and what scores they are getting when they visit various websites," Greene said, adding he was happy with the outcome.

A trial date has not been set, but Greene expects it sometime this fall.

Experian and TransUnion could not immediately be reached for comment late on Sunday night.

Fair Isaac filed the case in October 2006, alleging the credit bureaus' joint development of VantageScore violated antitrust laws, according to the filing in federal court in Minneapolis.

Fair Isaac also claimed the scoring range used in the VantageScore model was confusingly similar to its range and constituted trademark infringement, unfair competition and deceptive trade practice, according to the document.

Fair Isaac had also sued Equifax but settled with that agency in June 2008, the filing said. (Reporting by Paritosh Bansal; Editing by Anshuman Daga)