A federal judge in California has rejected JPMorgan Chase’s motion to dismiss a suit that charges the bank illegally cut a couple’s home equity line of credit. Chase unsuccessfully argued that the plaintiffs, former customers of Washington Mutual, should sue the Federal Deposit Insurance Corp., which approved Chase’s purchase of WaMu. Chase had claimed that a decline in the couple’s income caused the HELOC reduction. According to Jay Edelson of the law firm KamberEdelson, which represents the plaintiffs, Chase claimed that although it purchased WaMu’s assets, it supposedly did not acquire any liability—even for its own misconduct. The judge sided with the plaintiffs, a California couple who are seeking class-action status for the suit.

Click here to read the release from KamberEdelson.