A recent bank acquisition has landed PNC Bank Corp. in a tangle of litigation over a failed real estate venture.

A federal district judge in Newark last week declined to accept PNC's motion to dismiss a lawsuit filed originally against Wilkes-Barre, Pa.- based First Eastern Bank, which PNC acquired in June. The suit claims that First Eastern, now PNC, violated various provisions of the Racketeer Influenced and Corrupt Organizations Act in regard to its financing of a real estate development known as Valley of Lakes, near Hazelton, Pa.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.