05:40 AM EDT, 05/10/2024 (MT Newswires) -- Porch Group ( PRCH ) filed a lawsuit Thursday against China Construction Bank alleging it conspired with an Israeli insurance firm to issue fake reinsurance letters of credit that cost it tens of millions of dollars, Reuters reported Friday, citing court documents.

Porch reportedly accused the Chinese lender of enabling "massive fraud" that caused "monumental losses" by collaborating with the now-defunct Israeli firm Vesttoo, Reuters reported, citing a complaint filed to the US Southern District Court of New York.

Porch said its Homeowners of America Insurance unit paid tens of millions of dollars in premiums for non-existent reinsurance until July 2023, when it became clear certain of the letters of credit were fake, according to the report.

Porch and China Construction Bank did not immediately reply to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 3.3300, Change: -0.06, Percent Change: -1.77