In the ongoing pursuit to recover alleged mismanaged funds, another lawsuit tied to the collapse of New London Security Federal Credit Union has been dismissed.
This time around, a suit filed by Wells Fargo Advisors LLC was dismissed by a Connecticut district court judge for failure to demonstrate a right to indemnity or contribution.
According to its complaint, Wells Fargo sued several former New London board members alleging negligence by Edwin Rachleff, the financial adviser who allegedly mismanaged the credit union's investments. Rachleff was also an investment broker with A.G. Edwards & Sons Inc., which later merged with Wachovia Securities and then Wells Fargo. He committed suicide on the same day the NCUA liquidated New London in 2008.
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