Tricolor Noteholders Sue JPMorgan, Barclays and Fifth Third (1)

Holders of notes issued by Tricolor Holdings sued JPMorgan Chase & Co., Barclays Plc and Fifth Third Bancorp., accusing the banks of helping to perpetuate a fraud at the now-bankrupt used-car dealer and lender.

The banks were named in a lawsuit filed Thursday in New York by several investment firms including One William Street Capital Management and Janus Henderson Group Plc. The plaintiffs said they collectively hold more than $230 million in Tricolor notes.

Tricolor filed for bankruptcy in September. Company founder and former Chief Executive Officer Daniel Chu and others were chargedin December with allegedly defrauding ...