Suit Against Credit Lyonnais Is Benched

One of two Executive Life policyholders’ suits against Credit Lyonnais died when a federal appeals court upheld a ruling by a trial court that California’s insurance commissioner has “exclusive standing” under state law to bring such claims.

More than 300,000 Executive Life policyholders claim they lost $4.7 billion when France’s sixth-largest bank took over the failed life insurer.

The U.S. 9th Circuit Court of Appeals decision could affect California Atty. Gen. Bill Lockyer’s suit against Credit Lyonnais, which seeks at least $2 billion in damages. U.S. District Judge A. Howard Matz on Monday indicated he’s inclined to dismiss Lockyer’s suit on the same exclusive standing principle. Matz said he would wait to see what the 9th Circuit said on two appeals before issuing a final order.