Previous Settlement Bars Repo Tax Windfall Suit, Ally Argues

Law360, New York (May 2, 2014, 4:04 PM EDT) -- Ally Financial Inc. on Thursday asked a California federal judge to junk a proposed class action accusing the lender of claiming allegedly unearned tax benefits from repossessed vehicles, arguing the plaintiffs are bound by a settlement in a similar suit that was approved months before their suit was even filed.

Ally argued that lead plaintiffs Joseph and Danielle Riley are members of a class that was preliminarily certified by a California state court in June 2013 in a near-identical lawsuit. That lawsuit also accuses the lender...
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