Judge Rejects Zelle's Bid to Dismiss New York AG's Fraud-Loss Lawsuit
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A US judge denied the Zelle operator's motion to dismiss the suit brought by NY Attorney General Letitia James, which accuses the bank-backed P2P service of failing to protect users from fraud. The case now proceeds to discovery. For anyone building payment rails, this is a live test of whether network operators — not just the sending bank — carry liability for authorized-push-payment fraud.