First Union National Bank v. A.G. Edwards & Sons, Inc.

—Order, Supreme Court, New York County (Ira Gammerman, J.), entered January 6, 1999, which granted defendants’ motion to dismiss the complaint for failure to state a cause of action, unanimously affirmed, with costs.

Plaintiff banks were allegedly defrauded of some $354 million by entities not named as defendants in this lawsuit. Subsequent to the fraud, those entities are said to have invested the fraudulently obtained funds through defendant brokers. In this action, plaintiffs seek to recover the funds of which they were defrauded from defendant brokers upon the theory that although…