A judge has ruled that Bank of America does not have to defend itself against a lawsuit filed by the Federal Deposit Insurance Corp. on behalf of a failed bank.

The lawsuit, tied to the FDIC's efforts to reclaim funds on behalf of Colonial Bank in Montgomery, Ala., failed to meet the statute of limitations, U.S. District Judge Mariana Pfaelzer said in a Monday ruling.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.