A federal judge has dismissed an investor lawsuit against JPMorgan Chase, Barclays and Fifth Third, which had accused the banks of missing “giant red flags” ahead of subprime auto lender Tricolor’s bankruptcy.

Judge Jed Rakoff of the U.S. District Court for the Southern District of New York did not provide a specific reason for the dismissal, only writing Tuesday that “an opinion explaining the reason for this ruling will issue in due course.”

Plaintiffs, led by One William Street Capital Management, alleged in February that Tricolor operated “a blatant double-pledging scheme,” where a single auto loan was pledged as collateral for multiple warehouse credit lines with different banks, and the company often continued doing so after that auto loan was sold into a securitization.

Auditors made the banks aware of various issues in 2022 and 2024, plaintiffs alleged, and “the only question that remains is how the Defendants failed to stop it.”

“Rather than risk a massive loss on their warehouse lines and forfeit the millions of dollars of fees and income derived from Tricolor’s fraudulent enterprise, Defendants responded by hiding what they had learned and sticking their heads in the sand to avoid learning more,” investors alleged in the lawsuit.

Barclays and Fifth Third declined to comment to Reuters, and JPMorgan had no ​immediate comment.

Tricolor filed for bankruptcy in September, after which JPMorgan Chase, Fifth Third and Barclays each logged charge-offs well over $100 million.

Tricolor CEO Daniel Chu and COO David Goodgame were both indicted in December for allegedly defrauding creditors and lenders. Both men pleaded not guilty.