WASHINGTON, D.C. - The U.S. Supreme Court on March 10 invited the solicitor general to file a brief addressing whether Congress' removal of a private right of action from the Truth in Savings Act (TISA) bars consumers' California unfair competition law (UCL) claim (Bank of America N.A. v. Harold C. Rose, et al., No. 13-662, U.S. Sup.).
SAN FRANCISCO - A federal judge in California on March 7 dismissed a woman's lawsuit against Wells Fargo Bank N.A. and HSBC Bank USA, finding that she lacked standing to challenge the assignment of her mortgage loan in 2007 and that she was unable to show how Wells Fargo's alleged violation of the Real Estate Settlement Procedures Act (RESPA) caused her to suffer an injury (Marialuz A. Barnares v. wells Fargo Bank N.A., et al., No. C-13-4896, N.D. Calif.; 2014 U.S. Dist. LEXIS 29909).
WASHINGTON, D.C. - The District of Columbia Circuit U.S. Court of Appeals on March 7 rejected the former CEO of the failed Sterling Bank's appeal of an Office of the Comptroller of the Currency (OCC) ban and $1 million fine for misrepresenting the bank's capital reserves, finding that he could not assert that he lacked information about changing regulations (Lawrence Dodge v. Comptroller of the Currency, No. 12-1416, D.C. Cir.; 2014 U.S. App. LEXIS 4248).
WASHINGTON, D.C. - The U.S. Supreme Court on March 10 agreed to hear an appeal in a lawsuit seeking a determination as to the reach of the American Pipe & Construction Co. v. Utah rule in securities class action lawsuits (Public Employees' Retirement System of Mississippi v. IndyMac BBS Inc., et. al., No. 13-640, U.S. Sup.).
NEW YORK - The U.S. Securities and Exchange Commission on March 6 filed a lawsuit in the U.S. District Court for the Southern District of New York against five former executives of bankrupt law firm Dewey & LeBoeuf, alleging that they engaged in a fraudulent bond offering to finance the ailing firm in violation of various federal laws governing the issuing of securities (Securities and Exchange Commission v. Steven H. Davis, et al., No. N/A, S.D. N.Y.).
NEW YORK - Bankrupt MF Global Holdings Ltd. (MFGH) on March 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York seeking to subordinate and reclassify claims filed by a former employee based on money he says he is owed from the MFGH employee stock program (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).
DETROIT - A federal judge in Michigan on March 5 adopted in part a magistrate judge's ruling, finding that a woman sufficiently showed that she suffered noneconomic damages as a result of a loan servicer's alleged violation of the Real Estate Settlement Procedures Act (RESPA) but overturned the magistrate judge's conclusion that the plaintiff created a genuine issue of fact regarding the defendant company's alleged failure to properly respond to one of her qualified written requests (QWR) for information (Cheryl Rak v. Saxon Mortgage Services Inc., et al., No. 12-13801, E.D. Mich.; 2014 U.S. Dist. LEXIS 27941).
CENTRAL ISLIP, N.Y. - A federal judge in New York on March 5 dismissed certain state law claims from a multidistrict litigation alleging that HSBC Bank USA NA improperly charged overdraft fees to debit card customers, holding that cardholders cannot bring claims in states where they have no connection (In Re: HSBC Bank USA N.A. Debit Card Overdraft Fee Litigation, No. 13-2451, E.D. N.Y.).
GAINESVILLE, Ga. - A federal judge in Georgia on March 5 denied OneBeacon Midwest Insurance Co.'s (OneBeacon) motion to reconsider a dismissal order and for leave to file an amended complaint in a suit OneBeacon brought seeking a declaration that it did not owe coverage to directors and officers of the failed Habersham Bank, finding that OneBeacon "has not shown that its proposed amendments will vest this Court with jurisdiction" (OneBeacon Midwest Insurance Co. v. The Federal Deposit Insurance Corp., No. 12-0106, N.D. Ga.; 2014 U.S. Dist. LEXIS 27870).
CHICAGO - The investor who filed a putative class action against Mt. Gox Inc., the bankrupt operator of a bitcoin exchange, on March 4 moved in the U.S. District Court for the Northern District of Illinois for a temporary restraining order and a preliminary injunction preventing the company from "dissipating" its assets held in the United States (Gregory Greene v. Mt Gox, et al., No. 14-01437, N.D. Ill.).
NEW YORK - JPMorgan Chase & Co. will pay $400 million to settle claims that it misrepresented the risk involved with certain residential mortgage-backed securities (RMBS) that were insured by monoline insurer Syncora Guarantee Inc., according to a financial statement issued by Syncora on Feb. 28, bringing an end to four lawsuits Syncora filed in an attempt to recover its losses (Syncora Guarantee Inc. v. EMC Mortgage LLC, et al., No. 650420/2012, N.Y. Sup., New York Co.; Syncora Guarantee Inc. v. EMC Mortgage LLC, et al., No. 653519/2012, N.Y. Sup., New York Co.; Syncora Guarantee Inc. v. JPMorgan Securities LLC, et al., No. 651566/2011, N.Y. Sup., New York Co.; Syncora Guarantee Inc. v. EMC Mortgage Corp., No. 09-3106, S.D. N.Y.).
ORLANDO, Fla. - A Florida federal judge on Feb. 28 sent a class complaint over a bank's practice of charging non-account holders a check-cashing fee back to state count after determining the amount in controversy fell below jurisdictional requirement of the Class Action Fairness Act (CAFA) (Brian McDaniel, et al. v. Fifth Third Bank, No. 13-1878, M.D. Fla.; 2014 U.S. Dist. LEXIS 25971).
MINNEAPOLIS - A federal judge in Minnesota on March 4 refused to dismiss counterclaims from a suit arising from a dispute regarding a $140 million construction loan because the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) does not preclude the counterclaims (LNV Corp. v. Outsource Service Management LLC, et al., No. 13-1926, D. Minn.; 2014 U.S. Dist. LEXIS 27087).
BALTIMORE - A federal judge in Maryland on Feb. 28 allowed breach of fiduciary duty claims to remain in a suit the Chapter 7 trustee for a failed bank's holding company filed against the bank's former directors and officers (Charles R. Goldstein v. David Berman, et al., No. 12-2507, D. Md.; 2014 U.S. Dist. LEXIS 26348).
NEW YORK - Societe Generale has agreed to pay $122 million to settle claims that certain of its subsidiaries misrepresented the investment quality of certain residential mortgage-backed securities (RMBS) it and other financial institutions sold to Fannie Mae and Freddie Mac in violation of state and federal law, according to a press release issued on Feb. 27 by the Federal Housing Finance Agency (FHFA) (Federal Housing Finance Agency, as conservator for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp., v. SG Americas Inc., et al., No. 11-6203, S.D. N.Y.).
CHICAGO - A putative class of investors filed a lawsuit against bankrupt Mt. Gox Inc. on Feb. 27 in the U.S. District Court for the Northern District of Illinois, alleging fraud, breach of contract and other causes of action related to the loss of 744,000 bitcoins, a digital currency the investors say is valued at $409.2 million (Gregory Greene v. Mt Gox, et al., No. 14-01437, N.D. Ill.).
KANSAS CITY, Kan. - BancInsure Inc. does not have to cover a suit the Federal Deposit Insurance Corp. filed against former directors of Columbian Bank and Trust Co. because coverage of the FDIC's underlying claims is excluded from the bank's policy, a federal judge in Kansas ruled Feb. 27 (BancInsure Inc. v. Carl L. McCaffree, et al., No. 12-2110, D. Kan.; 2014 U.S. Dist. LEXIS 24941).
KANSAS CITY, Kan. - A directors and officers insurance policy's "insured v. insured" exclusion unambiguously precludes coverage for the Federal Deposit Insurance Corp.'s (FDIC-R) gross mismanagement claims against a bank's former directors, a Kansas federal judge ruled Feb. 27 (BancInsure Inc. v. Carl L. McCaffree, et al., No. 12-2110-KHV, D. Kan.; 2014 U.S. Dist. LEXIS 24941).
NEW ORLEANS - A federal judge in Louisiana on Feb. 27 granted a motion to dismiss filed by the Federal Deposit Insurance Corp., as the receiver for a failed bank (FDIC-R), in a suit alleging that the FDIC and others caused a consumer to lose $84,000 by allowing funds to be fraudulently transferred from his account (Joseph Grubaugh v. Central Progressive Bank, et al., No. 13-3045, E.D. La.; 2014 U.S. Dist. LEXIS 25158).
WASHINGTON, D.C. - Slow but steady improvement in the banking industry continues, and the number of banks on the Federal Deposit Insurance Corp.'s "Problem List" declined from 515 to 467 during the fourth quarter of 2013, according to a press release accompanying the Feb. 26 release of the FDIC's Quarterly Banking Profile.
DALLAS - A federal judge in Texas on Feb. 24 dismissed a suit arising from the alleged default on promissory notes issued by a bank that subsequently failed, finding that "complete diversity is destroyed" because of the Federal Deposit Insurance Corp.'s involvement (Eagle TX I SPE LLC v. Sharif & Munir Enterprises Inc., et al., No. 13-2565, N.D. Texas; 2014 U.S. Dist. LEXIS 23138).
WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 26 ruled that the Securities Litigation Uniform Standards Act of 1998 (SLUSA) does not preclude Latin American investors in Stanford Investment Bank (SIB) from bringing state law claims against SIB and SIB's insurance brokers and lawyers (Chadbourne & Parke LLP v. Samuel Troice, et al., No. 12-79, Willis of Colorado Inc. v. Samuel Troice, et al., No. 12-86, Proskauer Rose LLP v. Samuel Troice, et al., No. 12-88, U.S. Sup.).
BOSTON - Santander Consumer USA Inc. must produce its written policies regarding its imposition of online payment fees in a suit alleging that the bank improperly charged late fees for credit card and debit card payments, a federal magistrate judge in Massachusetts ruled Feb. 24, saying the policies are relevant to the complaint (Cara Powers v. Santander Consumer USA Inc., No. 12-11932, D. Mass.; 2014 U.S. Dist. LEXIS 22804).
CHICAGO - A federal judge on Feb. 24 awarded summary judgment to defendants in a lawsuit brought by a couple claiming that the lender, loan servicer and nominee to their mortgage loan violated the Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA) and Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA), after finding that the plaintiffs were unable to produce sufficient evidence to support their allegations (David Cocroft, et al. v. HSBC Bank USA N.A., et al., No. 10 C 3408, N.D. Ill.; 2014 U.S. Dist. LEXIS 22680).
CENTRAL ISLIP, N.Y. - A federal judge in New York on Feb. 22 denied class certification to merchants who allege that Wells Fargo Bank NA and credit card payment processor First Data Merchant Services Corp. (FDMS) overcharged them for credit card processing fees, finding that the merchants do not meet certification requirements and dismissing the case (Spread Enterprises. Inc v. First Data Merchant Services Corporation, et al., No. 11-4743, E.D. N.Y.; 2013 U.S. Dist. LEXIS 22307).