SAN FRANCISCO - Automated teller machine (ATM) cardholders lack standing to seek antitrust damages related to the fixed interchange fee that a card-issuing bank pays to the ATM owner and the foreign ATM fee that the cardholder pays to his bank when the cardholder uses ATMs owned by other institutions, the Ninth Circuit U.S. Court of Appeals affirmed July 12 (In re: ATM Fee Antitrust Litigation, Pamela Brennan, et al. v. Concord EFT, Inc., et al., No. 10-17354, 9th Cir.; 2012 U.S. App. LEXIS 14265).
CHICAGO - An insurer's rescission counterclaims are barred by the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) 12 U.S.C.S. § 1821, a Illinois federal judge ruled July 10, dismissing the counterclaims against the Federal Deposit Insurance Corp. in a coverage dispute arising from insured bank employees' alleged wrongful misconduct (The Federal Deposit Insurance Corporation v. OneBeacon Midwest Insurance Company, No. 11 C 3972, N.D. Ill., Eastern Div.; 2012 U.S. Dist. LEXIS 94922).
ST. LOUIS - An Eighth Circuit U.S. Court of Appeals panel on July 12 upheld the dismissal of a Minnesota couple's lawsuit against Mortgage Electronic Registration Systems Inc. (MERS) and Aurora Loan Services Inc. after agreeing with a federal judge that the plaintiffs failed to state a claim upon which relief could be granted (Gary Cox, et al. v. Mortgage Electronic Systems Inc., et al., No. 11-2646, 8th Cir.; 2012 U.S. App. LEXIS 14245).
WASHINGTON, D.C. - A federal judge in Washington on July 11 partially dismissed a consumer's class action lawsuit against a debt collector and one of its managing partners for lack of proper venue but transferred the case to another federal district court where the venue would be proper (Juliette Murdoch v. Rosenberg & Associates LLC, et al., No. 12-36, D. D.C.; 2012 U.S. Dist. LEXIS 95580).
DALLAS - A federal judge in Texas on July 11 granted summary judgment in favor of a bank alleged to have violated the Electronic Fund Transfer Act (EFTA) by not posting an ATM fee notice because the photographs of the ATM without a notice submitted by the plaintiff are undated and do not describe the location or identity of the operator of the ATM ((Frank Bonarrigo v. Prosperity Bank, No. 11-03555, N.D. Texas; 2012 U.S. Dist. LEXIS 96653).
NEW YORK - A Second Circuit U.S. Court of Appeals panel, in an unpublished opinion issued July 12, affirmed a lower court decision and found that an investment fund could not bring derivative claims against a company's directors and officers (In re: Ambac Financial Group, Incorporated, No. 11-4643, 2nd Cir.; 2012 U.S. App. LEXIS 14229).
NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on July 12 affirmed a bankruptcy court's ruling dismissing a debtor's former husband's child support claim because the debtor was likely to win a claim that would have offset the amount she owed him (In the Matter of: Lisa Ann Galaz, No. 11-50761, Chapter 13, 5th Cir.; 2012 U.S. App. LEXIS 14261).
SIOUX CITY, Iowa - An Iowa federal magistrate judge on July 11 denied a motion by the Federal Deposit Insurance Corp., as receiver of an insured bank, for early discovery in a directors and officers coverage dispute (Progressive Casualty Insurance Company v. Federal Deposit Insurance Corporation, et al., No. C12-4041-DEO, N.D. Iowa, Western Div.; 2012 U.S. Dist. LEXIS 96337).
ATLANTA - The 11th Circuit Court of Appeals on July 12 ruled that a district court erred when it found that it did not have subject matter jurisdiction over a dispute involving a failed bank because the Federal Deposit Insurance Corp. had not been formally substituted in a state court action prior to removal (North Savannah Properties LLC, et al. v. Federal Deposit Insurance Corp., No. 11-12784, 11th Cir.; 2012 U.S. App. LEXIS 14324).
NEW YORK - A federal judge in New York on July 11 granted in part and denied in part a number of dismissal motions in a securities class action lawsuit against Bank of America Corp. (BoA), several of its current and former officers and directors and others for alleged violations of federal securities laws (Pennsylvania Public School Employees' Retirement System v. Bank of America Corp., et al., No. 11-733, S.D. N.Y.).Subscribers may view the opinion available within the full article.
MIAMI - Bank of the West has become the latest bank to settle claims in a multidistrict litigation in which plaintiffs allege that it manipulated customers' debit card transactions in order to charge overdraft fees, agreeing to pay $18 million to exit the suit, according to a document the plaintiffs filed July 11 in a federal court in Florida (In Re: Checking Account Overdraft Litigation, No. 09-md-2036, S.D. Fla.).
Review a complimentary copy of the motion for preliminary approval of the class settlement in the attached PDF.
LITTLE ROCK, Ark. - A consumer has properly pleaded a majority of her claims against a debt collector and lender, a federal judge in Arkansas ruled July 10 in denying the defendants' motion to dismiss and allowing the consumer to amend her complaint (Rosie M. Thomas v. Deutsche Bank National Trust Co., et al., No. 11-775, E.D. Ark.; 2012 U.S. Dist. LEXIS 94940).
ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on July 11 affirmed the dismissal of a suit arising from JP Morgan Chase Bank's (Chase) assumption of a loan from the failed Washington Mutual Bank (WaMu), finding that amendment of the plaintiffs' Real Estate Settlement Practices Act (RESPA) claim would be futile and that their non-RESPA claims are barred by res judicata (Christopher Hintz, et al. v. JPMorgan Chase Bank, et al., No. 11-1560, 8th Cir.; 2012 U.S. App. LEXIS 14121).
FORT WAYNE, Ind. - A broadcasting company plausibly alleged that a competitor entered into collusive agreements to aggregate exclusive network affiliations and engaged in denigrating commercial speech and predatory hiring with the purpose and effect of excluding competition in the television local spot advertising market in Fort Wayne, in violation of federal and state antitrust laws, a federal judge in Indiana ruled July 9 in denying the competitor's motion to dismiss (Nexstar Broadcasting, Inc. v. Granite Broadcasting Corporation, et al., No. 1:11-CV-249, N.D. Ind.; 2012 U.S. Dist. LEXIS 95024).
RICHMOND, Va. - A split panel of the Fourth Circuit U.S. Court of Appeals on July 11 ruled that a bankruptcy court properly denied a debtor's Chapter 13 plan because her calculation of her size of household did not follow the proper approach; namely, she should have claimed only three of her five children as members of her household (Tanya Rene Johnson v. William H. Zimmer, No. 11-2034, Chapter 13, 4th Cir.; 2012 U.S. App. LEXIS 14153).
CHICAGO - A former employee of bankrupt Peregrine Financial Group Inc. on July 11 filed a putative class action on behalf of himself and others in the U.S. District Court for the Northern District of Illinois, seeking damages for alleged violations of federal employment law (Ronald Kotulak v. Peregrine Financial Group Inc., No. 12-05447, N.D. Ill.). Subscribers may view the complaint available within the full article.
SAN FRANCISCO - Plaintiffs who sued a website owner for purchases made through a third party lack constitutional or statutory standing and the required reliance required by the California unfair competition law (UCL), a federal judge held June 9 (Sharon Gentes, et al. v. Trend Micro Inc., et al., No. 11-5574, N.D. Calif.). Subscribers may view the opinion available within the full article.
NEW YORK - The federal bankruptcy judge in New York presiding over the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines, on July 11 issued an order lifting the automatic stay to allow Wells Fargo Bank Northwest National Association to enforce its rights under lease agreements related to American's practice of selling planes to the lender and then leasing them back (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the order available within the full article.
NEW YORK - A federal judge in New York on July 9 denied a former Citigroup Global Markets Inc. employee's motion for summary judgment on claims that he misrepresented the investment quality of certain collateralized debt obligations (CDOs) he structured and marketed for Citigroup in violation of federal securities laws (United States Securities and Exchange Commission v. Brian Stoker, No. 11-7388, S.D. N.Y.).
DENVER - A consumer has properly shown that a debt collector and law firm violated provisions of the Fair Debt Collection Practices Act (FDCPA) 15 U.S.C.S. §§1692 et seq..when they attempted to collect post-judgment interest at a certain rate on the consumer's debt from a defaulted credit card account, a federal judge in Colorado ruled July 9 (Tracy Shepherd v. Liberty Acquisitions LLC, et al., No. 11-0718, D. Colo.; 2012 U.S. Dist. LEXIS 94199).
LOS ANGELES - A federal magistrate judge in California on July 9 denied a defendant debt collector's motion for attorney fees following the award of summary judgment in favor of the collector in a suit in which it was alleged to have violated the Fair Debt Collection Practices Act (FDCPA)15 U.S.C.S. §§1692 et seq., in its attempts to collect on debt arising from the plaintiffs' loans (Thomas Davis, et al. v. Pioneer Credit Recovery Inc. et al., No. 11-1963, C.D. Calif.; 2012 U.S. Dist. LEXIS 94532).
NEW YORK - The trustee of the SemGroup Litigation Trust on July 9 filed a complaint against Barclays Bank PLC in the U.S. Bankruptcy Court for the Southern District of New York, seeking repayment of a $143 million fee it claims Barclays "extorted" from SemGroup (Bettina Whyte as trustee of the SemGroup Litigation Trust v. Barclays Bank PLC and Barclays Capital Inc., No. 12-5318, Chapter 11, S.D. N.Y.). Subscribers may view the complaint available within the full article.
CHICAGO - The U.S. Commodities Futures Trading Commission (CFTC) on July 10 sued Peregrine Financial Group Inc. and its CEO in the U.S. District Court for the Northern District of Illinois, seeking penalties for alleged violations of federal commodities law; the same day, Peregrine filed for Chapter 7 bankruptcy (U.S. Commodities Futures Trading Commission v. Peregrine Financial Group Inc., et al., No. 12-05383, N.D. Ill. and In Re: Peregrine Financial Group Inc., No. 12-27488, Chapter 7, N.D. Ill. Bkcy.). Subscribers may view the CFTC complaint and bankruptcy petition available within the full article.
DETROIT - A federal judge in Michigan on July 10 granted a plaintiff's motion to amend his complaint and denied a loan issuer's motion to dismiss in a suit alleging that the loan issuer violated the Telephone Consumer Protection Act (TCPA) 47 U.S.C.S. § 227. (Pasquale Longordo v. Veterans United Home Loans, No. 12-11738, E.D. Mich.; 2012 U.S. Dist. LEXIS 95255).
CINCINNATI - Directors and officers of a company argue in an July 10 brief in Ohio federal court that a shareholder failed to show that presuit demand would have been futile because he did not show particularized facts that at least half of the company's board of directors faced a substantial likelihood of liability for their alleged inaction to put certain corporate governance policies in place (Henry Stanley, derivatively on behalf of Cardinal Health, Inc, v. Colleen F. Arnold, et al., No. 12-cv-00482, S.D. Ohio). Subscribers may view the brief available within the full article.