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Western Alliance sues Jefferies over loans linked to First Brands

Western Alliance has sued investment bank Jefferies, alleging breach of contract and fraud over loans tied to the collapse of auto parts supplier First Brands. The Phoenix-based lender said it filed a complaint in the ‌New York Supreme Court against Jefferies and others for "breach of contract and fraud" for "conduct related to a commercial loan collateralized by accounts receivable purchased from First Brands Group." Western Alliance CEO Kenneth Vecchione said: "I can't tell you what's behind Jefferies' motive . . . We are deeply disappointed by Jefferies' conduct." In response, Jefferies said: "We regret that the Bank, as well as a range ​of lenders to and around First Brands, will suffer losses as a result of this fraud. We believe that the lawsuit is without merit and it ​will be defended vigorously."

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