Lawyers for Barclays Capital last week told a federal court fraud claims regarding a failed CDO it sold to Eastern Financial Florida Credit Union, the biggest ever credit union failure, are barred by the statute of limitations on such securities suits and should be dismissed.

The Wall Street bank called allegations of fraud by Space Coast Credit Union, the Florida credit union that acquired the remnants of the one-time $2.4-billion credit union, “fanciful” and “bereft of facts.”

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