Skadden lawyers won an important victory for Fremont General Corporation in class action litigation regarding its subprime lending business. Judge Florence-Marie Cooper of the U.S. District Court for the Central District of California granted Skadden's motion to dismiss the class action filed in June 2008 against Fremont General and its former officers and directors. The case against Fremont had been stayed as a result of its Chapter 11 filing.
The Oct. 28 decision comes against the backdrop of the subprime mortgage crisis that has created turmoil in the banking sector and stock markets around the world. Fremont General was one of the nation's largest subprime lenders.