Credit Suisse Group AG was ordered to face a lawsuit by New York's attorney general accusing the bank of fraud in sales of mortgage-backed securities before the recession.

A New York State Supreme Court judge rejected the bank's request to dismiss the lawsuit, which demands as much as $10 billion in damages. Attorney General Eric Schneiderman's suit was valid, and he demonstrated the bank may have engaged in misconduct, Judge Marcy Friedman said in yesterday's decision.

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