Category: Financial Services Litigation

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Supreme Court: Plaintiffs Must Allege “Concrete Injury” to Establish Standing to Bring FCRA Claim

On May 16, 2016, the United States Supreme Court ruled in Spokeo, Inc. v. Robins that consumers who bring claims under the Fair Credit Reporting Act (FCRA) must do more than allege a technical statutory violation to have standing to maintain an action in federal court. The Court held that Article III standing requires a … Continue Reading

Florida BK Court Allows Borrowers to Challenge Foreclosure on Surrendered Property

On February 29, 2016, the United States Bankruptcy Court for the Southern District of Florida ruled that a borrower’s statement of intention to surrender real property does not preclude that borrower from later asserting a defense to a foreclosure proceeding if the bankruptcy trustee did not abandon the property to the lienholder. This decision departs … Continue Reading

FCC Issues 138-Page Order Addressing TCPA Questions

On July 10, 2015, the Federal Communications Commission issued its highly anticipated “TCPA Omnibus Declaratory Ruling and Order” addressing a number of petitions and comments concerning interpretation of the Telephone Consumer Protection Act of 1991. The Order addresses a wide variety of TCPA topics, including the meaning of certain statutory terms and the application of … Continue Reading


On June 4, 2014, the Second Circuit issued a 28-page ruling holding that U.S. District Court Judge Jed Rakoff had “abused” his discretion by rejecting a $285 million U.S. Securities and Exchange Commission (“SEC”) settlement with Citigroup, Inc. because the bank neither admitted nor denied wrongdoing.  The 2011 decision led to increased criticism of the … Continue Reading


On May 22, 2014, the Consumer Financial Protection Bureau (CFPB) issued its Spring 2014 Supervisory Highlights Report — its fourth such report since the agency’s founding.  The report includes a review of recent rulemaking, guidance, and enforcement activity.  The CFPB used its fourth report to focus on the importance of compliance management systems.  “In this … Continue Reading

Banking cases to follow in 2014

On January 1, 2014, Law360 published it list of "Banking Cases To Watch In 2014."  The list includes: NACS v. Board of Governors of the Federal Reserve System, Case No. 13-5270, U.S. Court of Appeals for the D.C. Circuit.  The Court will review the Fed’s appeal of a federal district court judge’s July 2013 ruling … Continue Reading

Justice Department Files $1B Suit Over Countrywide Loans Sold to Fannie Mae and Freddie Mac

On October 24, 2012, the U.S Department of Justice filed a $1 billion False Claims Act lawsuit against Bank of America alleging that its Countrywide unit sold loans to Fannie Mae and Freddie Mac that ended up in default.  The lawsuit is the first by the department to allege fraud concerning mortgages sold to the … Continue Reading

New York Appellate Court Bars MBS Investor Claims Against Loan Originators

In June 2012, the New York Supreme Court’s Appellate Division issued a short but insightful decision affirming a lower court’s dismissal of a derivative action filed by mortgage-backed securities certificate holders against loan originators based on allegations that the originators misrepresented the risk and quality of the residential mortgage loans sold to the trust.  Plaintiff … Continue Reading

Perkins Coie Update: LIBOR Rate-Fixing Scandal Deepens as Potential Plaintiffs Consider Legal Options

In the wake of the recent admissions by Barclays Bank PLC that its traders sought to manipulate the London Interbank Offered Rate ("LIBOR"), corporations and other investors are only now beginning to appreciate the magnitude of the scandal and to consider how it might impact their own investments. To date, governmental investigators and private litigants … Continue Reading

Number of FDIC Professional Liability Suits Against Failed Bank Execs Soars

According to a Law360 report, since 2009 the FDIC has authorized the filing of suits against 369 directors and officers of 54 failed banks, claiming a total of $8 billion in damages in professional liability lawsuits. The FDIC released the statistics in March 2012 report.  Professional liability suits are only pursued if they are both meritorious and cost-effective. Before … Continue Reading

Michigan Supreme Court Approves MERS Foreclosures

In a 4-3 decision, the Michigan Supreme Court approved non-judicial foreclosures instituted in the state by Mortgage Electronic Registration Systems (MERS).  The high court’s order overturns an April 2011 lower court decision that determined MERS could not use the state’s non-judicial foreclosure mechanism because it had no real interest in the underlying debt. In the written decision, the Michigan Supreme Court … Continue Reading

Investor Lawsuits Over MBS Loan Quality Continue to Mount

Litigation by investors regarding the quality of loans in Mortgage Backed Securities continue to pile up.  In an April 4, 2011 complaint filed in the U.S. District Court for the Southern District of New York, Union Central Life Insurance Co. alleged that Credit Suisse Securities (USA) LLC and affiliated entities made false statements and omitted information about the quality of loans included in its MBS … Continue Reading

Bank of America Sues Old Republic Title Insurance for Denying Mortgage Claims

Law360 reports that Bank of America has filed a bad faith insurance practices lawsuit against mortgage insurer Old Republic Insurance Co. over denied mortgage claims.  The Complaint, filed in the U.S. District Court for the Western District of North Carolina, alleges that Old Republic improperly turned down hundreds of millions of dollars in valid mortgage insurance claims "for reasons … Continue Reading

JPMorgan Chase Eliminates Mandatory Arbitration in Credit Card Contracts

American Banker reports that  JPMorgan Chase & Co. has agreed to eliminate mandatory arbitration clauses in its credit card contracts .   Bank of America made a similar decision in August 2009.   The scraping of mandatory arbitration clauses followed last summer’s settlement between National Arbitration Forum and the Minnesota attorney general, which included NAF’s agreement that it … Continue Reading

Jury Finds Ex-Bear Stearns Managers Not Guilty in Subprime Hedge Fund Case

Two former managers who ran a Bear Stearns hedge fund that invested in subprime bonds and derivatives were found not guilty of securities fraud charges by a Brooklyn jury.  According to a report in the Wall Street Journal, the government alleged that the two men, Ralph Cioffi and Matthew Tannin, lied to investors about the condition and value hedge funds filled … Continue Reading

Bank of America Responds to New York Attorney General Cuomo’s Investigation of Alleged Securities Violations; Cuomo Subpoenas Board Members

Bank of America Corp. has responded to  New York Attorney General Cuomo’s allegations that the bank failed to inform shareholders of material information related to its takeover of Merrill Lynch, according to a report in the American Banker.  In a September 8 letter to the bank, Cuomo’s office  also accused the bank of "indiscriminate invocation of the attorney-client privilege" and … Continue Reading

Mortgage Banking Article Notes Increase in Foreclosure Litigation, Legislative Efforts to Curb Foreclosures

A recent article in the Mortgage Banking Magazine by Donna Dezube summarizes numerous efforts by states, local governments, and borrower attorneys to delay or prevent foreclosure.  "Lawyers defending mortgage brokers have their hands full today.  The courts are jammed with motions to delay foreclosures actions, and frivolous litigation is going viral," the article states.   The … Continue Reading

FASB Considering Increased Disclosure of Potential Lawsuit Liabilities

During its August 19, 2009 board meeting, the Financial Accounting Standards Board (FASB) re-opened discussions of a controversial proposal requiring companies to disclosure more information about actual and potential lawsuits, according to an article in the American Banker.   In 2008, FASB pushed for changes to FAS 5 (contingent liabilities) that would expand reports of potential outcomes … Continue Reading

Mortgage Form Provider DocMagic, Inc. Sues Ellie Mae Alleging Antitrust Violations

DocMagic, Inc.,  the largest loan document production company in the United States, alleges in a federal antitrust complaint that software and services provider Ellie Mae has illegally denied customers the ability access DocMagic’s products through Ellie Mae’s ePass web portal.  DocMagic claims that Ellie Mae has cut it off from a market worth $200 million by denying it use of ePass, … Continue Reading

UBS and U.S., Switzerland Settle Lawsuit Seeking Account Information Concerning Potential Tax Evaders reports that a settlement has been reached resolving a U.S. Justice Department lawsuit against UBS AG seeking the names of Americans suspected of evading taxes through 52,000 secret Swiss accounts.  According to the Bloomberg report, tax lawyers believe that the settlement includes UBS agreeing to disclosure information about thousands of accounts.  In February, Zurich based UBS agreed to pay $780 million … Continue Reading