A U.S. district-court judge ruled that the Justice Department's case against Wells Fargo & Co. for alleged mortgage-related misconduct can proceed, according to a decision issued Tuesday.

The San-Francisco-based bank had filed a motion to dismiss the government's case. In response, U.S. District Judge Jesse Furman from the Southern District of New York said, "For the most part, Wells Fargo's arguments are unavailing."

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