A New York federal judge dismissed key class action claims launched by an Oklahoma pension fund alleging U.S. Bank failed to properly protect investors in its role as trustee for a series of mortgage-backed securities, Law360 writes.

U.S. District Judge G. Koeltl's ruling goes against the opinions of two other judges within the Second Circuit over trustees' liabilities under the Trust Indenture Act when mortgage-backed securities fail, an issue that the circuit court is currently considering.