Tricolor bill holders sue JPMorgan Chase and Barclays over fraud allegations - Bloomberg

LootboxPhobia · 2026-02-27T16:55:31+00:00

Investors have filed lawsuits against JPMorgan Chase, Barclays, and Fifth Third Bancorp, accusing them of aiding the bankrupt Tricolor Holdings in committing fraud. The plaintiffs hold over $230 million in notes, claiming that these banks ignored clear evidence of fraud for profit.

LootboxPhobia

2026-02-27 16:55:31

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Investing.com – According to Bloomberg News, holders of notes issued by Tricolor Holdings filed a lawsuit on Thursday against JPMorgan Chase (NYSE:JPM), Barclays Plc (LON:BARC), and Fifth Third Bancorp (NASDAQ:FITB), accusing these banks of aiding the now-bankrupt used car dealer and lending institution in committing fraud.

The lawsuit was filed in New York by multiple investment firms, including One William Street Capital Management and Janus Henderson Group Plc (NYSE:JHG). The plaintiffs stated that they collectively hold over $230 million in Tricolor notes.

Tricolor filed for bankruptcy in September. In December, the company’s founder and former CEO, Daniel Chu, along with others, was accused of defrauding banks and investors by repeatedly pledging or inflating the value of loan collateral, which was described as “virtually worthless.” Daniel Chu has denied these allegations.

Noteholders in the lawsuit claim that these banks ignored clear evidence of fraud, including what the plaintiffs describe as shocking audit reports of the company from 2022 and 2024. The lawsuit alleges that the banks overlooked these warning signs because they earned millions of dollars in fees from underwriting Tricolor’s securitized notes.

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