Banking

  • February 12, 2024

    Fired Wells Fargo Exec Nabs Partial Win In Retaliation Suit

    A California magistrate judge on Monday granted a partial win to a former Wells Fargo executive who sued the bank for allegedly firing him because he was a whistleblower, rejecting arguments that the bank is preempted by a provision of the National Banking Act.

  • February 12, 2024

    BigLaw Slams Hochul Plan To Divert Client Trust Interest Cash

    A long list of BigLaw attorneys, firm leaders and legal groups have urged New York Gov. Kathy Hochul to reconsider her plan to divert $100 million in interest earned on lawyer trust accounts that typically goes toward legal aid for low-income New Yorkers, calling the move "misguided" and cautioning that it could create "an existential threat" to civil legal services.

  • February 12, 2024

    Chancery Partly Shoots Down Moelis Founder Control Suit

    Global investment bank Moelis & Co. lost much of its bid Monday for summary dismissal of a stockholder suit seeking to invalidate stockholder agreements said to have wrongly ceded board powers to company founder and CEO Kenneth Moelis, Delaware's Court of Chancery ruled late Monday.

  • February 12, 2024

    Bank Trade Chief Warns Of Rules 'Masquerading As Guidance'

    The American Bankers Association's chief executive fired off a warning shot at federal regulators on Monday over their use of agency guidance, cautioning that several recent documents addressing certain bank fees and other practices are no substitute for formal rulemaking.

  • February 12, 2024

    Debt Collector Signs $2.45M Deal In Ransomware Breach Suit

    Convergent Outsourcing will pay $2.45 million to settle a proposed class action stemming from a ransomware attack two years ago that potentially exposed the names, contact information and Social Security numbers of over 640,000 people, according to a renewed preliminary approval motion filed Friday in Washington federal court.

  • February 12, 2024

    Man Who Laundered $30M Gets 18 Years After Fiery Hearing

    An Atlanta man was sentenced to 18 years in prison Monday for his role in a $30 million money-laundering scheme following a heated two-day hearing in which he became so argumentative that the overseeing judge reminded him he'd been a lawyer longer than the man had been alive.

  • February 12, 2024

    Flagstar Takes Aim At 'Nonsensical' $3M Signature Fraud Suit

    Flagstar Bank has urged a New York federal judge to toss a cash advance lender's suit that seeks millions of dollars allegedly stolen from its account at Signature Bank years before the bank failed, saying the theory that Flagstar should be on the hook for Signature's liabilities as its acquirer is "nonsensical."

  • February 12, 2024

    NC High Court Snapshot: Philip Morris Fights Tax Credit Limit

    North Carolina's top court will return in February from an extended hiatus to weigh whether a home healthcare company was correctly ejected from the state's Medicaid program, and if regulators were right to limit state export tax credits for tobacco giant Philip Morris.

  • February 12, 2024

    Del. Justices Refuse Deutsche Bank's Vik Case Appeal

    A missed deadline has sunk Deutsche Bank's hopes for Delaware Supreme Court review of a Chancery Court ruling rejecting its midcase appeal in a long-running recovery suit targeting $50 million allegedly controlled by holdings of Norwegian billionaire investor Alexander Vik.

  • February 12, 2024

    Siblings Fail To Escape SEC's $112M Pump-And-Dump Suit

    A brother and sister named in a U.S. Securities and Exchange Commission case concerning an alleged pump-and-dump scheme that defrauded investors of $112 million failed to escape the suit after a Texas federal judge ruled that the SEC successfully showed that the siblings had at least a general awareness of their role in the scheme, among other things.

  • February 12, 2024

    Financial Services Co. Underpaid Women Execs, Ex-VP Says

    Trustly Inc. vastly underpaid female executives compared to their male colleagues in keeping with a misogynistic "tech-bro culture," according to a former vice president who claimed in a complaint filed in New Jersey federal court that she was discharged for raising concerns about the pay disparity.

  • February 12, 2024

    Lotto Scammer Impersonated SDNY Criminal Chief, Feds Say

    A Costa Rican national was charged with impersonating law enforcement officials, including the chief of the criminal division of the U.S. Attorney's Office for the Southern District of New York, as part of a scheme to trick elderly victims into wiring him millions under the false pretense that they'd won a lottery prize.

  • February 12, 2024

    Frank Execs Say JPMorgan Is Withholding Communications

    Charlie Javice and Olivier Amar, the indicted former executives of student loan startup Frank, asked a Manhattan federal judge Saturday for an extension of time to decide on raising an advice-of-counsel defense at their trial, saying they can't make a decision yet because JPMorgan is withholding discovery of their communications with Frank's general counsel.

  • February 12, 2024

    Loan Broker Defied FCRA By Sharing Financial Info, Suit Says

    Auto loan broker OpenRoad was has been hit with a proposed class action accusing it of harming customers by sharing their personal financial information with its lending partners without consent.

  • February 09, 2024

    No More Shady Trading For Ex-FBI Trainee After BigLaw Theft

    The former FBI trainee who secretly traded nonpublic information that he stole from his BigLaw associate ex-girlfriend has agreed to a civil judgment against him permanently barring him from violating securities laws, a judgment entered just months after he pled guilty to insider trading.

  • February 09, 2024

    Merrill Customer Sues Over Lax WhatsApp Supervision

    A Merrill customer has filed suit against two of the broker-dealer's branch managers for allegedly failing to supervise advisers who used WhatsApp to communicate about risky options strategies that ultimately wiped out his account.

  • February 09, 2024

    Honda Finance Arm Discloses CFPB Credit-Reporting Probe

    Honda's U.S. automotive finance arm told investors Friday that the Consumer Financial Protection Bureau is investigating its consumer credit-reporting practices.

  • February 09, 2024

    2nd Circ. Won't Revive Credit Suisse Delisted Trade Note Suit

    The Second Circuit declined on Friday to revive a proposed class action accusing Credit Suisse of causing retail investors substantial losses by delisting a popular exchange-traded note, saying the bank gave adequate warnings of the risks investors faced and cautioned them against holding the note for more than a day, among other things.

  • February 09, 2024

    SEC's 'Orwellian' Trade Database Is Unlawful, 11th Circ. Told

    Citadel Securities LLC and the American Securities Association have laid out their objections to a U.S. Securities and Exchange Commission directive that requires brokerage firms to fund the buildup of a database known as the consolidated audit trail, telling the Eleventh Circuit that the tool created an "Orwellian surveillance regime" that puts American investors at risk of being hacked.

  • February 09, 2024

    Seattle YWCA Says BNY Mellon Mismanaged $20M Fund

    A Seattle-area chapter of the nonprofit Young Women's Christian Association has sued BNY Mellon alleging the bank's mismanagement of an investment portfolio caused $1.4 million in losses for the organization.

  • February 09, 2024

    2nd Circ. Revives Investors' Mexican Bond-Rigging Claims

    The Second Circuit on Friday reinstated U.S. investor claims accusing major banks of a yearslong collusion to rig Mexican government bond prices, saying a New York district court wrongly found it didn't have jurisdiction over the matter.

  • February 09, 2024

    Apartment Sellers Didn't 'Cook' The Books, Mich. Panel Rules

    A lender stuck with a failed $19 million student apartment deal can't blame the seller for trying to entice them into a bad deal because the original buyers ignored red flags about the property and went ahead anyway, a Michigan appellate panel has ruled. 

  • February 09, 2024

    NY AG Wins $77M Judgment For Predatory Lending Suit

    New York Attorney General Letitia James has secured a $77 million judgment against three merchant cash advance companies and their principals accused of harming small businesses through high-interest loans and undisclosed fees.

  • February 09, 2024

    FCRA Immunity Waiver Ruling Tees Up Compliance Frenzy

    A U.S. Supreme Court ruling that the Fair Credit Reporting Act waives federal agencies' immunity from lawsuits will not only open the door to more litigation against government lenders but may also trigger housecleaning to ensure that debts are correctly reported, experts told Law360.

  • February 09, 2024

    Jordan Calls For Investigation Into DOJ's Deal With IRS Leaker

    House Judiciary Committee Chairman Jim Jordan is investigating whether federal prosecutors were politically motivated to allow the former IRS contractor who leaked former President Donald Trump's tax returns to plead guilty to a single count of illegal disclosure, calling the arrangement "a sweetheart deal."

Expert Analysis

  • Where Justices Stand On Chevron Doctrine Post-Argument

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    Following recent oral argument at the U.S. Supreme Court, at least four justices appear to be in favor of overturning the long-standing Chevron deference, and three justices seem ready to uphold it, which means the ultimate decision may rest on Chief Justice John Roberts' vote, say Wayne D'Angelo and Zachary Lee at Kelley Drye.

  • Perspectives

    6 Practice Pointers For Pro Bono Immigration Practice

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    An attorney taking on their first pro bono immigration matter may find the law and procedures beguiling, but understanding key deadlines, the significance of individual immigration judges' rules and specialized aspects of the practice can help avoid common missteps, says Steven Malm at Haynes Boone.

  • Series

    ESG Around The World: Canada

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    In Canada, multiple statutes, regulations, common law and industry guidance address environmental, social and governance considerations, with debate over ESG in the business realm potentially growing on the horizon, say attorneys at Blakes.

  • Bank M&A Considerations Amid 2024's Regulatory Uncertainty

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    Following the decline in banking mergers to the lowest level in more than a decade last year, receptiveness to community bank combinations and positive macroeconomic factors may help banks with less than $50 billion in assets see increased deal-making opportunities this year, despite regulatory uncertainty, say Robert Azarow and Amber Hay at Arnold & Porter.

  • Lessons From Country Singer's Personal Service Saga

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    Recent reports that country singer Luke Combs won a judgment against a Florida woman who didn’t receive notice of the counterfeit suit against her should serve as a reminder for attorneys on best practices for effectuating service by electronic means, say attorneys at Jenner & Block.

  • What To Expect From High Court In Corp. Disclosure Case

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    Oral argument in Macquarie v. Moab Partners — a case with the potential to significantly alter corporate disclosures and private securities litigation liability — suggests that the U.S. Supreme Court is focused on answering the narrow question presented, say Elizabeth Gingold Clark and Madeleine Juszynski Davidson at Alston & Bird.

  • 11 Noteworthy CFPB Developments From 2023

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    Under Rohit Chopra’s leadership, 2023 was an industrious year for the Consumer Financial Protection Bureau, with developments including the release of the proposed personal financial data rights rule, publication of proposed rules involving public registries for nonbanks and the bureau's continuous battle against junk fees, all of which are sure to further progress in 2024, say attorneys at Husch Blackwell.

  • Unpacking PCAOB's Sanctions Against China-Based Auditors

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    Following the Public Company Accounting Oversight Board's first major enforcement actions against audit firms located in China and Hong Kong for violating quality control standards, China-based U.S. issuers should be prepared for more rigorous audits in the upcoming cycle, and for continuing strict scrutiny from the regulator, say attorneys at Debevoise.

  • NC Banking Brief: All The Notable Legal Updates In Q4

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    Two new North Carolina financial services laws went into effect in the fourth quarter of 2023 that amended the state's Retail Installment Sales Act and Consumer Finance Act, increasing the maximum interest rates and default late charges that may be assessed for loans, says Gursharon Shergill at Wagner Hicks.

  • 3 Areas Of Focus In Congressional Crosshairs This Year

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    Companies must prepare for Congress to build on its 2023 oversight priorities this year, continuing its vigorous inquiries into Chinese company-related investments, workplace safety and labor relations issues, and generative artificial intelligence, say attorneys at Morgan Lewis.

  • NY CRE Lenders Need Clarity On Foreclosure Standing

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    Recent contradictory New York case law regarding issues of standing in commercial real estate litigation creates confusion for borrowers and lenders alike, and should be addressed by courts in advance of the anticipated onslaught of commercial mortgage-backed securities foreclosures, say Christopher Gorman and John Muldoon at Rosenberg & Estis.

  • Series

    Baking Bread Makes Me A Better Lawyer

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    After many years practicing law, and a few years baking bread, I have learned that there are a few keys to success in both endeavors, including the assembly of a nourishing and resilient culture, and the ability to learn from failure and exercise patience, says Rick Robinson at Reed Smith.

  • 3 Key Class Action Trends To Use As Guidance In 2024

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    Telephone Consumer Protection Act, privacy and false advertising class actions saw significant shifts last year — including a trend toward expanding the application of preexisting laws to current technologies — that businesses should keep in mind to navigate the class action landscape in 2024, say attorneys at Mintz.

  • Federal Courts And AI Standing Orders: Safety Or Overkill?

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    Several district court judges have issued standing orders regulating the use of artificial intelligence in their courts, but courts should consider following ordinary notice and comment procedures before implementing sweeping mandates that could be unnecessarily burdensome and counterproductive, say attorneys at Curtis.

  • Time To Step Up PFAS Due Diligence In Cross-Border M&A

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    Regulations in the U.S. and EU governing per- and polyfluoroalkyl substances will likely evolve to become global standards out of necessity and scale, so PFAS due diligence — particularly for buyers, sellers, and lenders and investors involved in multijurisdictional mergers and acquisitions — will be essential in 2024, say attorneys at Shipman & Goodwin.

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