NEW YORK, Sept 24 A federal judge rejected Wells
Fargo & Co's bid to dismiss a lawsuit accusing the
largest U.S. mortgage lender of defrauding the government by
lying about the quality of mortgages it submitted for insurance
U.S. District Judge Jesse Furman in Manhattan on Tuesday
said the U.S. Department of Justice might pursue all its federal
statutory claims against Wells Fargo, which is also the
fourth-largest U.S. bank.
He dismissed some other claims because either they were
brought too late, or the government had supposedly been aware of
Wells Fargo's misconduct at the time they arose.
The lawsuit filed last October accused Wells Fargo of
misleading the U.S. Department of Housing and Urban Development
into believing its loans qualified for insurance by HUD's
Federal Housing Administration. It sought damages and civil
penalties expected to reach hundreds of millions of dollars.
Wells Fargo did not immediately respond to requests for