Banking

  • February 14, 2024

    Capital One Accused Of Hiding Savings Account Changes

    Capital One concealed from existing account holders that it offered new customers superior high-yield savings account options while also cutting interest rates on older accounts to reap financial benefits, according to a proposed class action filed Wednesday in California federal court.

  • February 14, 2024

    Retirement Plan Funds Get Partial Thaw During DOL Probe

    Hundreds of retirement and profit-sharing plans will be allowed to find new management amid the U.S. Department of Labor's investigation into allegations their previous administrator improperly shuffled and may have embezzled millions of dollars from 17 of them, a Pennsylvania federal judge said Wednesday.

  • February 14, 2024

    Deputy AG Warns Of Harsher Penalties For Crimes Aided By AI

    Deputy Attorney General Lisa Monaco on Wednesday said the U.S. Department of Justice will seek harsher penalties for crimes committed with the aid of artificial intelligence, calling the technology a "double-edged sword" that can be exploited by criminals but utilized by prosecutors with the right controls in place.

  • February 14, 2024

    Split Fed. Circ. Won't Revive Patent Case Against Bank

    Judges on the Federal Circuit split in a Wednesday finding on how exactly the courts should read the phrase "transaction partner" in a patent lawsuit against a regional bank in Indiana, with the majority opting to agree with a federal judge in Illinois that the words could only be construed in such a way that meant the patent case couldn't hold up in court.

  • February 14, 2024

    NYCB Faces Another Class Action Over CRE Challenges

    A New York Community Bank investor has brought a proposed class action alleging that executives falsely boasted of the bank's financial condition after making two large acquisitions, when the deals in fact weighed down its balance sheet and led to a significant dividend reduction.

  • February 14, 2024

    Atty For Ex-Trump Official Accused Of Leaking Deposition

    The plaintiff in a federal fraud suit against a former Trump administrative State Department official and a Philadelphia attorney wants the defendants' attorney sanctioned and tossed from the case after the attorney allegedly shared depositions marked confidential with a third-party witness.

  • February 14, 2024

    2nd Circ. Backs Goldman's Victory In 401(k) Self-Dealing Suit

    The Second Circuit upheld Goldman Sachs' win in a class action from 29,000 employee 401(k) plan participants who said the banking giant violated federal benefits law by including underperforming proprietary investment funds in their investment roster, citing evidence Wednesday of a "robust process" to manage potential conflicts.

  • February 14, 2024

    Owner Forms Holding Co. For NBA's Suns, WNBA's Mercury

    Phoenix Suns owner Mat Ishbia on Wednesday announced the formation of a new holding company that will own the NBA's Suns, the WNBA's Mercury, the operating rights to their arena and a new G League developmental affiliate that the Suns recently bought.

  • February 13, 2024

    $19M Mortgage Relief Case Is 1st Calif. DFPI, FTC Joint Win

    The Federal Trade Commission and the California Department of Financial Protection and Innovation have secured a $19 million judgment against four individuals and their corporations for running a mortgage assistance relief services scam, the agencies announced Tuesday.

  • February 13, 2024

    BofA Unit Hit With Trader's Suit Over Alleged Spoofing

    A Bank of America unit faces a trader's proposed class action seeking to hold it liable for allegedly manipulating markets for U.S. Treasury futures and options after the firm paid a $24 million fine to the U.S. Financial Industry Regulatory Authority over the same alleged misconduct.

  • February 13, 2024

    FinCEN Eyes Enlisting Fund Managers In Illicit Finance Fight

    The Financial Crimes Enforcement Network moved Tuesday to expand federal anti-money laundering requirements to hedge fund managers, private equity firms and other so-called investment advisers, issuing a proposal that seeks to harden a multitrillion-dollar segment of the financial sector against exploitation by criminals.

  • February 13, 2024

    Esquire Bank Faces Merchant Action Over Chargeback Fees

    Esquire Bank NA and a payment processing company face a proposed class action alleging they deceptively charged their merchant payment processing customers certain improperly high fees without appropriate disclosure.

  • February 13, 2024

    Accused Crypto Mixer 'Key' To Online Drug Market, Gov't Says

    Bitcoin Fog laundered hundreds of millions of dollars worth of bitcoin and played a "key role" in the online drug economy, prosecutors said in an opening statement Tuesday to kick off the trial of the accused operator of the cryptocurrency mixer in D.C. federal court.

  • February 13, 2024

    SEC's Gensler Promises 'War' On AI Fraud

    U.S. Securities and Exchange Commission Chair Gary Gensler told an audience of Yale Law School students on Tuesday that financial firms using so-called artificial intelligence could face the agency's wrath if they don't put proper safeguards in place to combat fraud against investors.

  • February 13, 2024

    Digitex CEO Let Unverified Users Trade Crypto, Gov't Alleges

    The founder of Digitex Futures Exchange was charged in Florida federal court over allegations he refused to implement policies designed to prevent money laundering on his cryptocurrency futures platform, the U.S. Attorney's Office for the Southern District of Florida said in a statement Tuesday.

  • February 13, 2024

    US Asks Court To OK $1.4B Tax Claim Against SVB

    A D.C. federal court should step in and approve a $1.4 billion IRS tax claim against the shuttered Silicon Valley Bank, the U.S. government said Tuesday, saying the court has the authority to circumvent a rejection by the Federal Deposit Insurance Corp., the bank's receiver.

  • February 13, 2024

    TD Ameritrade Says It's Not Liable For Fraudster's Conduct

    TD Ameritrade told a Florida federal judge Tuesday that a lawsuit brought on behalf of the wife of a deceased man accused of orchestrating a Ponzi scheme should be dismissed, arguing that it should not be held responsible just because its platform was used.

  • February 13, 2024

    Wells Fargo Can't Beat Inflated Stock Option Suit

    A Minnesota federal judge on Tuesday rejected Wells Fargo & Co.'s request to toss a proposed class action claiming the banking giant used its $40 billion employee retirement plan to buy company stock options at an inflated value to shoulder the company's 401(k) matching burden.

  • February 13, 2024

    Wells Fargo, Ex-Exec Continue Bids To Win Bias Suit

    A Wells Fargo unit and one of its former investment directors are pushing their competing bids for summary judgment in a disability bias suit, each claiming there is evidence to support their arguments regarding why the director's termination occurred.

  • February 13, 2024

    Catching Up With Delaware's Chancery Court

    A pizza chain, an energy company, a medical-device maker and a Manila casino were all hit with book-and-record demands last week in Delaware's Court of Chancery. A shoe company also walked away from a shareholder suit, two cryptocurrency companies tallied the costs of a broken merger, and three cigarette giants argued over Florida settlement payments.

  • February 13, 2024

    Ex-IRS Contractor Appeals 5-Year Sentence For Tax Info Leak

    A former IRS contractor sentenced to five years in prison for stealing and leaking former President Donald Trump's tax returns — and those of thousands of other wealthy people — to the media told a D.C. federal court he will appeal his final judgment.

  • February 13, 2024

    Akerman Grows In NY With Real Estate, Corporate Additions

    Akerman LLP recently announced two additions to its New York office: a former Faegre Drinker Biddle & Reath LLP partner and an attorney who helped launch the Washington, D.C., office of an international law firm.

  • February 12, 2024

    'Pig Butchering' Scheme Took Down Small Bank, Fed IG Says

    The July collapse of a Kansas community bank appears tied to a type of crypto scam known as pig butchering, enabled by a failure of internal controls that allowed its former CEO to allegedly siphon off enough money to force the bank's closure, according to a new report by a bank regulatory watchdog.

  • February 12, 2024

    State Street Inks $4.3M Deal To Resolve ERISA Claims

    State Street Corp. has agreed to pay $4.3 million to resolve proposed class claims that the bank managed its 401(k) plan for its own benefit rather than for workers in violation of the Employee Retirement Income Security Act, plan participants told a Massachusetts federal court on Monday.

  • 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.

Expert Analysis

  • 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.

  • Series

    NY Banking Brief: All The Notable Legal Updates In Q4

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    New York's banking and financial sector saw a number of notable regulatory and legislative changes in the final quarter of 2023, including guidance on climate risks and heightened cybersecurity protocols issued by the New York State Department of Financial Services, as well as final revisions to virtual currency listings in the state, say attorneys at WilmerHale.

  • What FTC CARS Rule Means For Auto Dealers And Lenders

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    A newly finalized Federal Trade Commission rule is aimed at changing how auto dealers interact with customers in the financing process, but will likely also affect banks and finance companies — and consequences for lenders and servicers have been amplified by recent Consumer Financial Protection Bureau enforcement actions, say attorneys at Morgan Lewis.

  • Bill Could Pave Path To 'Safer' Banking For Cannabis Industry

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    The Secure and Fair Enforcement Regulation, or SAFER, Banking Act, which was recently passed by a U.S. Senate committee, creates potential for financial inclusion of legally operating cannabis businesses and could promote recognition of the disconnect between federal laws and services unavailable to the industry, says Mark Bell at Stinson.

  • Why CFTC Whistleblowers Are Crucial To Crypto Regulation

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    The U.S. Commodity Futures Trading Commission's whistleblower program has proven to be a key tool in the U.S.' efforts to police cryptocurrency, but a funding issue shows that it has become a victim of its own success, says Stephen Kohn at Kohn Kohn.

  • 7 E-Discovery Predictions For 2024 And Beyond

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    The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.

  • Securities Class Actions Show No Signs of Slowing In 2024

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    Plaintiffs asserted securities class actions at elevated levels in 2023 — a sign that filings will remain high in the year ahead — as they switched gears to target companies that allegedly have failed to anticipate supply chain disruptions, persistent inflation, rising interest rates and other macroeconomic headwinds, say attorneys at Skadden.

  • How Corp. Transparency Act Can Unmask Crypto Owners

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    With the federal Corporate Transparency Act in effect as of Jan. 1, litigants may now have a less burdensome path toward determining the identities of owners behind convoluted corporate entities, and, by extension, any digital assets they own that could be subject to a potential judgment, says Brett Sager at Ehrenstein Sager.

  • Major EU AI Banking Ruling Will Reverberate Across Sectors

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    Following the European Court of Justice's recent OQ v. Land Hessen decision that banks' use of AI-driven credit scores to make consumer decisions did not comply with the General Data Protection Regulation, regulators indicated that the ruling would apply broadly, leaving numerous industries that employ AI-powered decisions open to scrutiny, say lawyers at Alston & Bird.

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