Banking

  • April 21, 2017

    Debt Agency Can't Thwart Class Cert. In Unfair-Collection Suit

    An Illinois federal judge on Friday granted class certification to a woman suing a debt collection agency she says illegally failed to disclose key information in collection letters, tossing arguments by Midland Credit Management that the woman lacked standing.

  • April 21, 2017

    Top Securities Plaintiffs’ Firms Brought In $7.23B In 2016

    Plaintiffs’ law firms were hard at work representing institutional investors and individual shareholders in 2016, with the top 50 firms raking in a combined $7.23 billion in class action settlements over the course of the year, according to a new report released Thursday.

  • April 21, 2017

    Feds Face Long Odds For Giuliani DQ In Gold Trader's Case

    Prosecutors won’t easily push Rudy Giuliani of Greenberg Traurig LLP and Michael Mukasey of Debevoise & Plimpton LLP from the defense team of a Turkish gold trader accused of violating U.S. sanctions on Iran, according to experts, who say it will take more than general concerns over Greenberg’s lobbying work for the Turkish government.

  • April 21, 2017

    Fidelity Sues Ex-Worker, Alleging Misuse Of Confidential Info

    Fidelity Brokerage Services LLC on Friday filed a lawsuit in New York federal court against one of its former employees and Citigroup Global Markets Inc., alleging that the employee, who is now working at Citigroup, is misusing Fidelity’s confidential and trade secret customer information.

  • April 21, 2017

    JPMorgan Pushed To Reveal Cybersecurity Code In IP Suit

    Patent holding company Intellectual Ventures on Thursday sought to force JPMorgan Chase & Co. to turn over source code for its cybersecurity software in New York federal court, reasoning that an expert’s testimony needed to be verified against the code itself to determine whether the technology infringes the company’s intellectual property.

  • April 21, 2017

    NY Business Lending Venture Was A Sham, Co-Owner Says

    A New York small business lending company accused its former business partners of creating fake customers to siphon off more than $1 million in seed money for their personal use, according to a complaint filed in New York federal court on Thursday.

  • April 21, 2017

    LexisNexis Provided Outdated Info To Lender, FCRA Suit Says

    A Virginia consumer has launched a proposed federal class action accusing a LexisNexis subsidiary of furnishing to Capital One a consumer report that contained outdated bankruptcy information in violation of the Fair Credit Reporting Act, which resulted in the denial of a home equity loan.

  • April 21, 2017

    Ocwen Investors Sue Over 54% Stock Dive After CFPB Case

    Ocwen Financial Corp. shareholders sued the mortgage servicer in Florida federal court Friday, saying share values plummeted by almost 54 percent the same day the Consumer Financial Protection Bureau accused Ocwen of using a faulty servicing database that resulted in wrongful foreclosure proceedings against at least 1,000 people.

  • April 21, 2017

    Tribal Embezzlement Suit Stayed For Criminal Case

    A California federal judge hit pause Thursday on the Paskenta Band of Nomlaki Indians’ lawsuit accusing former tribal officials of a wide-reaching, multimillion-dollar embezzlement scheme while new, related criminal charges against some of the ex-officials play out, with a few exceptions.

  • April 21, 2017

    DC Circ. Says CFPB Can't Demand For-Profit Schools Docs

    A D.C. Circuit panel Friday said the Consumer Financial Protection Bureau cannot force a for-profit college accrediting group to comply with an investigative demand to determine the group's accreditation method, saying the demand inadequately described the scope and purpose of the investigation.

  • April 21, 2017

    In-Flux DOJ Looks To Extend Deadlines In AmEx, BMI Appeals

    Two of the U.S. Department of Justice's biggest pending antitrust appellate fights against AmEx and BMI are poised to remain on ice until summer, as the watchdog waits for its new leadership to get into place.

  • April 21, 2017

    SquareTwo Creditors Aim To Block Several 1st-Day Motions

    SquareTwo Financial Services Corp. may have some difficulty obtaining its $58.5 million Chapter 11 loan, among other first-day requests, after its unsecured creditors filed a multipronged objection Thursday, voicing concern that the consumer and commercial debt collector’s restructuring plan may contain "fatal infirmities."

  • April 21, 2017

    Wells Fargo Adds Claims, Brings Fake Account Deal To $142M

    Wells Fargo & Co. on Friday announced that it expanded a class action settlement over allegedly fraudulent account generation to include claims stretching to May 2002 and bringing the total settlement amount to $142 million.

  • April 21, 2017

    China's Wecash Scores $80M Private Capital Infusion

    Wecash, a Chinese company using artificial intelligence to aid credit assessments, has collected $80 million from a group of private investors led by China Merchants Venture Capital, Forebright Capital and SIG Ventures, the companies said Friday.

  • April 21, 2017

    Securities Broker GTS Agrees To Injunction In $13M Suit

    Global Transition Solutions Inc. agreed to an injunction Thursday to settle U.S. Securities and Exchange Commission claims that the transition management brokerage bilked customers out of $13 million by coordinating with routing brokers to impose markups on the transactions and splitting the proceeds.

  • April 21, 2017

    SEC Enforcement Actions Data Show Priorities Shift

    The number of enforcement actions brought by the U.S. Securities and Exchange Commission over issuer reporting and disclosure jumped by a third, to 59, in the first half of the agency’s 2017 fiscal year, according to a report released on Thursday by economic and financial consulting firm Cornerstone Research.

  • April 21, 2017

    Trump Orders Review Of 2 Key Dodd-Frank Powers

    President Donald Trump on Friday signed executive orders calling for reviews of powers the Dodd-Frank Act gave regulators to unwind a giant bank and a panel of regulators the 2010 law set up to oversee the financial system.

  • April 20, 2017

    Investors Rip Wells Fargo Doc Request In $1.2B MBS Suit

    BlackRock and other investors in a proposed class action against Wells Fargo over its alleged bungling of $1.2 billion in mortgage-backed securities asked a New York federal judge Wednesday to rein in the bank’s discovery requests, claiming it is demanding documents that are either irrelevant or too burdensome to produce.

  • April 20, 2017

    Deutsche To Pay Fed $157M For Forex, Volcker Violations

    Deutsche Bank AG and affiliates will pay $156.6 million to settle two Federal Reserve probes that found the bank fell short of Volcker Rule oversight requirements and let its traders rig foreign exchange rates, the regulator said Thursday.

  • April 20, 2017

    Bankruptcy Judge Turns Down SunEdison Discovery Bid

    A New York bankruptcy judge Thursday denied a request by solar power company SunEdison Inc. for a round of discovery to investigate claims that it and its clean energy yieldcos owe $231 million under a 2014 wind energy deal, saying it appeared to be an “end-run” around the discovery process in the state case.

Expert Analysis

  • Lessons From Wells Fargo’s Corporate Control Failures

    Brian K. Tomkiel

    It is tempting to simply blame Wells Fargo’s C-suite for creating a corporate culture that fostered unethical behavior. Yet, a recent investigation into the bank's sales practices tells a deeper story about its corporate control functions and how they failed to fulfill their ultimate mandate — protecting the business from risk, says Brian Tomkiel, director of compliance at Gap Inc.

  • Monthly Column

    Gray Matters: The Attorney-Client Team

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    A 1979 study of attorney-client interactions revealed startling information: Despite years of education and training to hone their legal expertise, attorneys were not acting as independent counselors but rather allowing their clients to control them. Our experience is that this trend has accelerated, say dispute resolution experts Robert Creo and Selina Shultz.

  • Justices Skeptical Of SEC Disgorgement Without Time Limits

    Dan McCaughey

    The U.S. Supreme Court's questioning on Tuesday appeared to favor Kokesh’s position that the five-year statute of limitations applies to U.S. Securities and Exchange Commission disgorgement claims. The decision could meaningfully limit the uncertainty, expense and evidentiary disadvantages faced by entities and individuals responding to SEC investigations into conduct dating back more than five years, say attorneys with Ropes & Gray LLP.

  • Litigation Finance, Big Data And The Limits Of AI

    Christopher Bogart

    Theoretically, both better data and its better use should be able to improve results in litigation, and thus help litigation financiers allocate more capital to meritorious matters. However, while big data and artificial intelligence are intriguing additions to the litigation toolkit, they are far from turning litigation finance on its head, says Christopher Bogart, CEO of Burford Capital LLC.

  • Series

    Counsel To Counsel: Mama Said There'll Be Days Like This

    Peter J. Engstrom

    It's no longer enough for law firms simply to provide expert legal advice — we are expected to mirror clients' legal, ethics and social commitments and promises. For law firm GCs, the resulting job demands seem to grow exponentially, says Peter Engstrom, general counsel of Baker McKenzie.

  • Textualism Takes Center Stage In CalPERS V. ANZ Securities

    Joel Rothman

    Arguments before the U.S. Supreme Court this week in California Public Employee Retirement System v. ANZ Securities were notable for CalPERS’ focus on appealing to the court’s textualists. The case was argued on Justice Gorsuch’s first day on the bench by two of the court’s most well-credentialed advocates, say attorneys with Mintz Levin.

  • Series

    Counsel To Counsel: A Law Firm GC's Data Protection Duties

    Thomas W. White

    Increasingly, we see companies in all industries seeking to perform various levels of due diligence on our information security defenses. We received three times as many diligence requests from clients and prospective clients in 2016 as we did in 2015. Some clients even conduct their own penetration tests, says Thomas White, general counsel of WilmerHale.

  • Class Cert. Challenges For Meal Period Premium Claims

    Sandra Rappaport

    A California federal court's recent decision in Nicole Torres v. Wells Fargo shows that employees seeking to certify classes based on improper calculation of rest or meal break premiums — or even based on the failure to have been paid a premium at all — will have a hard time when it comes to certification, says Sandra Rappaport of Hanson Bridgett LLP.

  • British Virgin Islands Aligns With Global Standards

    Rachael McDonald

    The British Virgin Islands, like other offshore financial centers, has struggled against public perception that it is a treasure island for corrupt politicians and fraudsters. But global monitors now rank the BVI alongside the U.K. and the U.S. in compliance with international standards, and more constructive changes are on the way, say Rachael McDonald and Sarah Galletly of Mourant Ozannes.

  • Series

    Counsel To Counsel: Evaluating Positional Conflicts

    Nicholas A. Gravante Jr.

    What happens when attorneys come to their general counsel’s office with knowledge of a potential positional conflict? While the inquiry will depend on the rules governing the particular jurisdiction, there are a few general questions to consider from both business and legal ethics perspectives, say general counsel Nicholas A. Gravante Jr. and deputy general counsel Ilana R. Miller of Boies Schiller Flexner LLP.