http://www.lexisnexis.com/mealeys/news.aspx Headline Financial Services Litigation News from LexisNexis® en-us http://www.lexisnexis.com/mealeys/images/lexismealeyslogo.gif 130 29 http://www.lexisnexis.com/mealeys/news.aspx Copyright 2012 http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%201%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CORAL GABLES, Fla. - Citizens Financial Group Inc., RBS Citizens N.A. and Citizens Bank of Pennsylvania (collectively, Citizens), in an April 25 joint notice of settlement filed in Florida federal court, have agreed to pay $137.5 million to settle a class action lawsuit in which it was accused of manipulating its customers' transactions to generate excess overdraft fee revenues (In Re: Checking Account Overdraft Litigation, No. 09-2036, S.D. Fla.; See December 2011, Page 28). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%202%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CAMDEN, N.J. - A federal judge in New Jersey on April 19 denied TD Bank N.A.'s motion to dismiss a putative class action in which the plaintiffs allege that the bank committed unlawful banking practices by automatically registering customers in its overdraft protection program, concurring with a multidistrict litigation finding in a similar case that the plaintiffs have plausibly pleaded facts that state a claim for relief (Hughes, et al. v. TD Bank, N.A., No. 11-07257, D. N.J.; 2012 U.S. Dist. LEXIS 54765). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%203%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MIAMI - A federal judge in Florida on May 4 certified a class of accountholders in an action alleging that BancorpSouth Bank engaged in a scheme to extract the greatest possible number of overdraft fees from customers (In re Checking Account Overdraft Litigation, No. 09-md-2036, S.D. Fla.; See December 2011, Page 28). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%204%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MIAMI - A federal judge in Florida on May 16 certified a nationwide class and 11 regional subclasses of PNC Bank N.A. account holders accusing the bank of using a software scheme to illegally collect excessive overdraft fees (In re Checking Account Overdraft Litigation, No. 09-md-2036, S.D. Fla.; See December 2011, Page 28). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%205%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ST. PAUL, Minn. - A business has failed to show that a bank aided and abetted a credit card fraud by failing to properly cure known data breaches to its system and by failing to timely fix the problem, an Eighth Circuit U.S. Court of Appeals panel ruled May 18 in affirming dismissal of the businesses' complaint (E-Shops Corp., et al. v. U.S. Bank National Association, No. 11-2474, 8th Cir.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%206%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PROVIDENCE, R.I. - A federal judge in Rhode Island on May 4 denied final approval of the proposed settlement of a class action alleging that Bank of America Corp. (BAC) imposed unfair late fees on its credit card customers, calling the plaintiffs' request for $1.5 million in attorney fees and expenses "excessive" and saying the proposed settlement provides "too little benefit" to the class (Bruce J. Trombley and Ryan Sukaskas v. Bank of America Corp., No. 08-00456, D. R.I.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%207%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PHILADELPHIA - A federal judge in Pennsylvania on May 8 granted RBS Citizens Bank N.A.'s motion for summary judgment in a suit in which a plaintiff claims that the bank canceled his credit card in violation of the Equal Credit Opportunity Act (ECOA) and failed to provide him with the required notice of a significant change in his account in violation of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the Credit CARD Act), ruling that the notice was sufficiently specific under the ECOA and that the account cancellation was not a "significant change" to the account under the Credit CARD Act (Paul Dieffenbach Jr. v. RBS Citizens, N.A., No. 11-02800. E.D. Pa.; 2012 U.S. Dist. LEXIS 64441). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%208%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BANGOR, Maine - A federal judge in Maine on April 27 granted the defendant's motion to dismiss a proposed class action accusing the defendant of violating the Fair and Accurate Credit Transaction Act of 2003 (FACTA), finding that the plaintiff failed to plausibly allege that the defendant committed a willful violation of the act when it included a credit card expiration date on a receipt (Adam Vidoni v. The Acadia Corporation, No. 11-00448, D. Maine; 2012 U.S. Dist. LEXIS 59967). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%209%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CAMDEN, N.J. - In a suit in which a plaintiff says Bank of America N.A.'s failure to update his address caused him to wrongfully incur a late credit card charge, a federal judge in New Jersey on May 11 granted the bank's motion to dismiss because the plaintiff failed to allege the required steps for a Fair Credit Reporting Act (FCRA) claim, but she gave the plaintiff leave to file an amended complaint before she will remand the case to state court to decide a remaining claim (Thomas Annecharico v. Bank of America, N.A., No. 11-06508, D. N.J.; 2012 U.S. Dist. LEXIS 67003). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2010%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NASHVILLE, Tenn. - A federal judge in Tennessee on May 2 dismissed a Chase Bank USA, N.A. credit cardholder's suit seeking a declaration that under his credit card agreement, disputes with the bank must be resolved by arbitration, ruling that a New York federal court retains jurisdiction pursuant to a class action settlement (Daniel Smith v. Chase Bank USA, N.A., No. 11-01055, M.D. Tenn.; 2012 U.S. Dist. LEXIS 61793). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2011%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BECKLEY, W. Va. - A federal judge on May 18 denied HSBC Bank Nevada NA's motion to compel arbitration in a suit brought by a credit cardholder who says the bank illegally made phone calls to collect a debt, ruling that the bank did not meet its burden of proving that the parties entered into an agreement to arbitrate and that the plaintiff breached such an agreement (Scott Michael Shaffer v. HSBC Bank Nevada, N.A., et al., No. 12-00968, S.D. W. Va.; 2012 U.S. Dist. LEXIS 69818). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2012%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - The U.S. Supreme Court on May 21 declined to hear an appeal of a Second Circuit U.S. Court of Appeals ruling overturning a judge's finding that VCG Special Opportunities Master Fund Ltd. is entitled to Financial Industry Regulatory Authority (FINRA) arbitration and that VCG is a customer of Wachovia Bank N.A. with regard to VCG's investment in a credit default swap with Wachovia Bank (VCG Special Opportunities Master Fund, Ltd., f/k/a CDO Plus Master Fund Ltd., v. Wachovia Bank, National Association, et al., No. 11-1157, U.S. Sup.; See November 2011, Page 15). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2013%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - The U.S. Supreme Court on April 30 denied review of a Federal Circuit U.S. Court of Appeals Winstar ruling that dismissed a bank's breach of contract claims against the U.S. government regarding more than $13 million in losses the bank sustained when the thrift in which the bank invested was taken over by the Federal Deposit Insurance Corp. during the savings and loan crisis of the 1980s (First Annapolis Bancorp Inc. v. United States of America, No. 11-912, U.S. Sup.; See February 2012, Page 81). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2014%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank RIVERSIDE, Calif. - A California state court jury on April 25 returned a unanimous verdict clearing a title insurance company of wrongdoing in a bad faith lawsuit regarding a failed $37 million construction loan made by a bank to a developer for the construction of a residential development (Central Pacific Bank v. Fidelity National Title Insurance Co., No. RIC 525131, Calif. Super., Riverside Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2015%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ATLANTA - In a case in which the U.S. government sued a defendant to recover on defaulted student loans, the 11th Circuit U.S. Court of Appeals on May 7 affirmed a district court's dismissal of the defendant's counterclaim alleging negligence and negligent supervision by the government and seeking rescission of the loans, granting of the government's summary judgment motion, denial of further discovery and denial of his motion to dismiss (United States of America v. Massood Jallali, No. 11-11737, 11th Cir.; 2012 U.S. App. LEXIS 9237). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2016%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DETROIT - In a case in which the United States sued to collect on a student loan, a federal judge in Michigan on May 2 granted the United States' motion for summary judgment, rejecting the defendant's argument that summary judgment should be denied because the loan was paid via the settlement of a 1989 litigation (United States of America v. Cyril C. Hall, No. 11-14479, E.D. Mich.; 2012 U.S. Dist. LEXIS 61412). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2017%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAVANNAH, Ga. - In a suit in which a plaintiff says a debt collection company violated the Higher Education Act (HEA), the Fair Debt Collection Practices Act (FDCPA) and state law when it garnished her wages to collect on student loan debt, a federal judge in Georgia on May 8 granted the debt collector's motion for summary judgment because, in part, the HEA does not provide for a private cause of action (Sherry Council Bennett v. Premiere Credit of North America, LLC, No. 11-00124, S.D. Ga.; 2012 U.S. Dist. LEXIS 64686). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2018%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BECKLEY, W.Va. - A federal judge in West Virginia on May 7 denied a plaintiff's motion to remand to a state court a suit in which she accuses SLM Corp. and Sallie Mae Inc. of violating the Telephone Consumer Protection Act (TCPA) and state law in their efforts to collect on her student loans, finding that a district court has federal question jurisdiction (Terri A. Bailey v. SLM Corporation, et al., No. 11-00715, S.D. W.Va.; 2012 U.S. Dist. LEXIS 63619). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2019%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ORLANDO, Fla. - In a suit in which a plaintiff says defendants harassed her in violation of state law in their attempts to collect on her student loan debt, a federal judge in Florida on May 2 granted her motion to remand to a state court, finding that federal question jurisdiction has not been established (Laurel A. Sanchez v. Sallie Mae Inc., Educational Credit Management Corporation, No.11-1916, M.D. Fla.; 2012 U.S. Dist. LEXIS 61206). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2020%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BROOKLYN, NY - A federal judge in New York on May 15 granted the U.S. government's motion for summary judgment in a student loan case in which the debtor defendant unsuccessfully defended his default by arguing that the school he attended failed to give him a "proper education" (United States v. Joseph A. Husbands, No. 11-00475, E.D. N.Y.; 2012 U.S. Dist. LEXIS 67888). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2021%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ATLANTA - In light of the U.S. Supreme Court's ruling "that Congress did not deprive federal courts of federal-question jurisdiction over private TCPA [Telephone Consumer Protection Act] suits," the 11th Circuit U.S. Court of Appeals on April 23 reversed and remanded a district court's dismissal of a TCPA complaint (Marcus Mims v. Arrow Financial Services, LLC, No. 10-12077, 11th Cir.; 2012 U.S. App. LEXIS 8086; See January 2012, Page 6). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2022%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ATLANTA - In light of the U.S. Supreme Court's ruling that "Congress did not deprive federal courts of federal-question jurisdiction over private TCPA [Telephone Consumer Protection Act] suits," the 11th Circuit U.S. Court of Appeals on April 23 reversed and remanded a district court's dismissal of a TCPA class action complaint (Lynne Balthazor v. Central Credit Services Inc., et al., No. 11-15513, 11th Cir.; 2012 U.S. App. LEXIS 8082; See January 2012, Page 18). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2023%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CINCINNATI - In a case in which the receiver for an investment fund alleges that a bank breached its duty of care to the fund investors and aided an alleged Ponzi scheme, the Sixth Circuit U.S. Court of Appeals on May 4 affirmed the ruling that there was no agreement between the parties to arbitrate claims (Mark Dottore v. Huntington National Bank, No.10-4357, 6th Cir.; 2012 U.S. App. LEXIS 9185). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2024%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CLEVELAND - A federal judge in Ohio on May 18 approved CadleRock Joint Venture LP and Safeco Insurance Company of America's settlement of a suit in a Ohio federal court in which CadleRock accused Safeco of committing fraud by issuing lease bonds tied to a Ponzi scheme (CadleRock Joint Venture LP v. Safeco Insurance Company of America, No. 02-16020, N.D. Ohio). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2025%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank LAS VEGAS - In a suit in which the receiver of a fund sued Fidelity National Title Agency of Nevada Inc. and its escrow officer regarding an escrow account, a federal judge in Nevada on May 11granted the defendants' motions for summary judgment, explaining that more inquiry by the defendants would likely have led to the discovery of a Ponzi scheme, but the defendants had no legal duty to investigate (James H. Donell, Permanent Receiver v. Fidelity National Title Agency of Nevada Inc., et al., No. 07-00001, D. Nev.; 2012 U.S. Dist. LEXIS 66070). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2026%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank FORT LAUDERDALE, Fla. - A federal judge in Florida on May 8 dismissed a suit that accuses two banks of aiding convicted Ponzi schemer Scott W. Rothstein, ruling that the Private Securities Litigation Reform Act (PSLRA) bars federal Racketeer Influenced and Corrupt Organization Act claims whose underlying misconduct could be brought as an action for securities fraud (Amy Adams, et al., v. Scott W. Rothstein, et al., No. 11-61688, S.D. Fla.; 2012 U.S. Dist. LEXIS 64267). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2027%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SALT LAKE CITY - A federal judge in Utah on April 20 granted a motion to dismiss a suit accusing defendants of enabling an alleged Ponzi scheme conducted by a defendant in a Securities and Exchange Commission action, ruling that securities law statutes of limitations bar the plaintiffs' federal claims and declining supplemental jurisdiction over their state law claims (Padilla, et al. v. Winger, et al., No. 11-00897, D. Utah; 2012 U.S. Dist. LEXIS 56688). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2028%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals will not rehear an appeal of a California federal judge's ruling dismissing a consumer class action complaint against Bank of America N.A. over alleged false advertising with regard to its overdraft protection plan (ODP), a panel ruled in a split order on May 15 (Eduardo Larin v. Bank of America, N.A., No. 10-56276, 9th Cir.; See August 2010, Page 49). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2029%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank RICHMOND, Va. - In an unpublished opinion, the Fourth Circuit U.S. Court of Appeals on April 30 reversed a ruling, finding that the plaintiffs' West Virginia Uniform Fraudulent Transfer Act (WVUFTA) claim based on a corporation's drawdown on its line of credit and purchase of annuities was time-barred, and vacated the denial of a motion to increase a damage award (Joseph LaRosa, et al. v. Virgil D. LaRosa, et al., No. 11-1234, 4th Cir.; 2012 U.S. App. LEXIS 8777). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2030%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A Second Circuit U.S. Court of Appeals panel on May 17 agreed to hear an appeal of a New York federal court judge's partial dismissal of a shareholder class action lawsuit over alleged misrepresentations made by Citigroup Inc. and others regarding the investment quality of certain subprime mortgage-backed securities sold to the investors (Citigroup Inc., et al. v. International Fund Management S.A., et al., No. 12-1194, 2nd Cir.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2031%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - The Second Circuit U.S. Court of Appeals on May 9 upheld the dismissal of a law firm's class complaint accusing its bank of improperly delaying its access to the proceeds of a very large check (Law Offices of K.C. Okoli, P.C. v. BNB Bank, N.A., No. 11-904, 2nd Cir.; 2012 U.S. App. LEXIS 9384). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2032%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - The Seventh Circuit U.S. Court of Appeals on May 11 affirmed dismissal of a consumer's class complaint alleging that a collection agency's dunning letter violated the Fair Debt Collection Practices Act (FDCPA) (Misty M. Zemeckis v. Global Credit & Collection Corporation, No. 11-2334, 7th Cir.; 2012 U.S. App. LEXIS 9557). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2033%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DENVER - The 10th Circuit U.S. Court of Appeals on May 18 affirmed a federal court's dismissal of a suit in which plaintiffs say Ocwen Loan Services violated the Fair Debt Collection Practices Act (FDCPA) and caused irreparable harm and emotional distress when it foreclosed on their home (Charles C. Waldo, et al. v. Ocwen Loan Services, No. 12-4017, 10th Cir.; 2012 U.S. App. LEXIS 10046). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2034%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SCRANTON, Pa. - In a Fair Debt Collection Practices Act (FDCPA) case, a federal judge in Pennsylvania on May 14 granted the defendants' motion for judgment on the pleadings as to the plaintiff's claims of failure to produce documents and harassing discovery requests but denied the motion as to the plaintiff's claim that they engaged in deceptive practices at an arbitration hearing(Cathy Lee Jones v. Investment Retrievers, LLC, et al., No. 10-01714, M.D. Pa.; 2012 U.S. Dist. LEXIS 67286). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2035%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - A federal judge in Illinois on May 15 rejected debt collectors' motion to dismiss a consumer class action lawsuit, ruling that the defendants' failure to properly identify the creditor in a debt collection letter violates federal debt collection laws (Joshua Walls v. United Collection Bureau Inc., et al., No. 11-6026, N.D. Ill; 2012 U.S. Dist. LEXIS 68079). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2036%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank LAS VEGAS - A consumer has failed to state a claim for relief against a debt collector because he has not shown that the debt collector failed to properly itemize the principle and additional amounts owed in a letter seeking payment of the debt, a federal judge in Nevada ruled May 17 (Steven Benjamin v. Allied Interstate, No. 11-0881, D. Nev.; 2012 U.S. Dist. LEXIS 69018). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2037%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank HARRISBURG, Pa. - A debt collector's use of the phrase "refuse to pay" in a debt collection letter did not violate provisions of the Fair Debt Collection Practices Act (FDCPA) because the consumer failed to communicate with the debt collector as to whether she intended to pay the debt, a federal judge in Pennsylvania ruled April 20 (Jennifer Croftcheck v. Accounts Recovery Bureau, Inc., No. 11-1220, M.D. Pa.; 2012 U.S. Dist. LEXIS 56423). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2038%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BROOKLYN, NY - A federal judge in New York on May 11 substantially denied a debt collector's motion to dismiss a lawsuit alleging that it violated provisions of federal debt collection law by contacting an individual more than 20 times to collect on a debt that the individual did not owe, ruling that the debt collector's repeated phone calls constituted harassing behavior (Robert Doyle v. Midland Credit Management Inc., No. 11-5571, E.D. N.Y.; 2012 U.S. Dist. LEXIS 66522). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2039%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SACRAMENTO, Calif. - A federal judge in California on April 23 granted a consumer's motion to amend a complaint against a debt collector to add a number of class claims, ruling that the consumer timely filed the motion and the debt collector won't be prejudiced by amendment (Robin Langley v. Sentry Credit, Inc., No. 10-3060, E.D. Calif.; 2012 U.S. Dist. LEXIS 56847). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2040%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ST. LOUIS - A federal judge in Missouri on May 11 ruled that consumers are entitled to limited statutory damages against a debt collector for violations of the Fair Debt Collection Practices Act (FDCPA) because they have shown that the noncompliance with the statute was intentional but have failed to show that the noncompliance was frequent and persistent or that the level of the noncompliance warranted more in damages (Michael McCafferty, et al. v. Schwartzkopf Law Office, et al., No. 10-1401, E.D. Mo.; 2012 U.S. Dist. LEXIS 66392). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2041%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank LOS ANGELES - A federal judge in California on April 30 granted credit-reporting agencies' motion for summary judgment in a suit in which a plaintiff says they violated the Fair Credit Reporting Act (FCRA) by failing to properly investigate her credit history before lowering her rating and by failing to alter her rating after she provided them with additional information, finding that the credit reports were accurate within the meaning of the FCRA (Melba Gauci v. Citi Mortgage, et al., No.11-01387, C.D. Calif.; 2012 U.S. Dist. LEXIS 60153). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2042%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CLEVELAND - Because a defendant was on notice that a consumer had stated a claim for violation of the Fair Credit Reporting Act (FCRA) in his original state court complaint, the defendant was required to file its notice of removal within 30 days after receipt of the complaint, a federal judge in Ohio ruled May 9 in remanding the action to the state court (Mark Miller v. Credit Acceptance Corp., No. 12-663, N.D. Ohio; 2012 U.S. Dist. LEXIS 64945). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2043%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank LEXINGTON, Ky. - A consumer has properly pleaded a majority of her federal debt collection claims against a lender and a debt collector over an alleged auto loan debt, a federal judge in Kentucky ruled May 15 in granting in part and denying in part the defendants' motion to dismiss (Marcie Rushing v. Chase Auto Finance Corp., et al., No. 11-419, E.D. Ky.; 2012 U.S. Dist. LEXIS 68806). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2044%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHARLESTON, W.Va. - A federal judge in West Virginia on May 14 granted a debt collection company's motion to dismiss a plaintiff's claims for negligence and nuisance but allowed a claim for intentional infliction of emotional distress to remain, finding that the plaintiff has stated sufficient facts such that her complaint is not a "formulaic recitation of the elements of a cause of action" (Elizabeth A. Blackburn v. Consumer Portfolio Services, Inc., No. 11-00401, S.D. W.Va.; 2012 U.S. Dist. LEXIS 66784). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2045%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN DIEGO - A federal judge in California on May 11 granted summary judgment in favor of an ATM operator on an Electronic Fund Transfer Act (EFTA) claim because the operator did not remove a fees-notice decal and is shielded from liability by the EFTA's safe harbor defense (Shelby Ramsey v. Cardtronics USA, Inc., et al., No. 11-01511, S.D. Calif.; 2012 U.S. Dist. LEXIS 67228). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2046%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A monoline insurer has properly pleaded its fraud-based claims against Goldman, Sachs & Co. for allegedly fraudulently inducing it into providing guaranty insurance for a collateralized debt obligation, but it has failed to plead its claim for unjust enrichment, a New York justice ruled April 23 in granting in part and denying in part Goldman Sachs' motion to dismiss (ACA Financial Guaranty v. Goldman, Sachs & Co., No. 650027/11, N.Y. Sup., New York Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2047%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - Ruling that investor claims and defendants in two securities lawsuits against Bank of America Corp. and others over misrepresentations allegedly made in the issuance of residential mortgage-backed securities (RMBS) to the investors are substantially similar, a federal judge in New York on May 7 consolidated the actions for "all pretrial purposes" (Bank Hapoalim B.M. v. Bank of America Corp., No. 12-3359; Principal Life Insurance Co. v. Bank of America Corp., No. 12-3360, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2048%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A JPMorgan Chase & Co. investor filed a shareholder derivative lawsuit in New York state court on May 3, alleging that certain of the company's current and former officers and directors breached their fiduciary duty by misrepresenting the investment quality of residential mortgage-backed securities (RMBS) JPMorgan sold to Fannie Mae and Freddie Mac (Kentucky State District Council of Carpenters Pension Trust Fund v. James Dimon, et al., No. 651476/2012, N.Y. Sup., New York Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2049%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - Investors sued Bank of America Corp., Merrill Lynch & Co. Inc. and certain of their subsidiaries in a New York state court on May 14, alleging that the defendants misrepresented the underwriting standards used in pooling mortgage loans to sell as residential mortgage-backed securities (RMBS) (IKB International S.A., in liquidation, and IKB Deutsche Industriebank AG v. Bank of America Corp., et al., No. 651678/2012, N.Y. Sup.; New York Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2050%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - Metropolitan Life Insurance Co. and four of its subsidiaries sued Morgan Stanley and eight of its subsidiaries in New York state court on April 25, alleging that the defendants misrepresented the investment quality and underwriting standards used in preparing certain residential mortgage-backed securities (RMBS) Morgan Stanley sold to MetLife (Metropolitan Life Insurance Co., et al. v. Morgan Stanley, et al., No. 651360/2012, N.Y. Sup., New York Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2051%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SANTA ANA, Calif. - A federal judge in California on April 25 declined to dismiss a breach of contract count arising from appraisal services in a suit filed by the Federal Deposit Insurance Corp. as the receiver for Washington Mutual Bank (WaMu), finding that a written contract requirement was designed only to protect the bank (Federal Deposit Insurance Corporation v. LSI Appraisal LLC, et al., No. 11-00706, C.D. Calif.; 2012 U.S. Dist. LEXIS 58008). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2052%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BALTIMORE - In a suit in which the Chapter 7 bankruptcy trustee for a bank holding company sued the Federal Deposit Insurance Corp. regarding the bank's alleged coordinated lending scheme, a federal judge in Maryland on May 16 partially granted the FDIC's motion to dismiss (Charles R. Goldstein, Chapter 7 trustee for K Capital Corporation v. Federal Deposit Insurance Corporation, No. 11-1604, D. Md.; 2012 U.S. Dist. LEXIS 68491). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2053%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank TACOMA, Wash. - A federal judge in Washington on April 19 granted a plaintiffs' motion to remand to a state court a suit arising from a loan and home foreclosure related to Washington Mutual Bank (WaMu), which failed after the loan was made (Beiermann, et al. v. JP Morgan Chase Bank, NA, et al., No. 11-05952, W.D. Wash.; 2012 U.S. Dist. LEXIS 55252). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2054%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN DIEGO - A federal judge in California on April 24 granted the Federal Deposit Insurance Corp.'s motion to substitute another party in place of itself as plaintiff in a suit in which the FDIC, as the receiver for a failed bank, sued defendants for alleged breach of contract on a loan but later sold interest in the loan to another party (Federal Deposit Insurance Corporation Acting as Receiver for La Jolla Bank, FSB v. CG 80, LLC, et al., No. 11-02165, S.D. Calif.; 2012 U.S. Dist. LEXIS 57382). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2055%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank TAMPA, Fla. - A federal judge in Florida on April 27 dismissed a rescission claim from a suit arising from a mortgage loan related to a failed bank, but she allowed the plaintiffs' state law claims to remain (Wane, et al. v. Loan Corporation, et al., No. 11-02126, M.D. Fla.; 2012 U.S. Dist. LEXIS 59114). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2056%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN JUAN, Puerto Rico - In a case in which the Federal Deposit Insurance Corp. substituted as plaintiff for a failed bank that sued defendants because they allegedly defaulted on loans, a federal judge in Puerto Rico on April 26 granted the FDIC's motion to dismiss the defendants' counterclaims against it, finding that the defendants did not exhaust the administrative claims process pursuant to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) (Federal Deposit Insurance Corporation v. Beneficial Mortgage Corp., et al., No. 10-01827, D. Puerto Rico; 2012 U.S. Dist. LEXIS 58892). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2057%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PHOENIX - A federal judge in Arizona on May 14 granted the Federal Deposit Insurance Corp.'s motion to intervene but denied its motion to dismiss an action in which plaintiffs sued the bank that acquired their loans in order to seek resolution of their rights of first refusal agreements, finding that 12 U.S. Code Section 1821 does not apply to the plaintiffs' claims (Eric M. Rinestone, et al. v. Enterprise Bank & Trust, No. 11-02381, D. Ariz.; 2012 U.S. Dist. LEXIS 67862). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2058%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DALLAS - In a suit in which plaintiffs contended that Citibank NA is not the holder of the note evidencing their loan that was originally held by Washington Mutual Bank (WaMu) and asserted counts for violations of the Texas Constitution, a federal judge in Texas on May 21 granted Citibank's motion for summary judgment on all of the plaintiffs' claims (Lance Puig, et al. v. Citibank, NA, No. 11-00270, N.D. Texas; 2012 U.S. Dist. LEXIS 70398). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2059%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BRUNSWICK, Ga. - A federal magistrate judge in Georgia on May 10 denied a bank's motion to strike defenses in a suit in which the bank sued to recover on a promissory note it allegedly acquired when it took over a failed bank (Bank of the Ozarks v. Arco Community Outreach Coalition, Inc., et al., No. 12-00017, S.D. Ga.; 2012 U.S. Dist. LEXIS 65905). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2060%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DENVER - A federal judge in Colorado on April 23 granted the defendants' motion to transfer to a district court in Illinois a suit filed against them by a bank attempting to recover amounts owed on a promissory note, loan agreement and two commercial guaranties, finding that factors including the residence of the defendants and a witness's health issues favor transfer (Community Banks of Colorado v. 1320 Snowbunny Lane, LLC et al., No. 11-02700, D. Colo.; 2012 U.S. Dist. LEXIS 56176). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2061%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - In a case arising from an unpaid mortgage loan, a federal judge in Illinois on April 26 granted the defendants' motions to voluntarily dismiss the Federal Deposit Insurance Corp. from the action and remand the suit to a state court (Inland Bank v. Robert Newman Family LLC, et al., No. 12-00379, N.D. Ill.; 2012 U.S. Dist. LEXIS 58528). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2062%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DETROIT - In a foreclosure action in which a plaintiff accuses Chase Bank, N.A., and the failed Washington Mutual Bank (WaMu) of mortgage assignment fraud and other violations, a federal judge in Michigan on May 3 denied the plaintiff's request to amend his complaint, finding that his motion does not follow the court's local rules (Michael A. Brown v. Chase Bank, N.A., No. 12-11440, E.D. Mich.; 2012 U.S. Dist. LEXIS 61981). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2063%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank TUCSON, Ariz. - A federal judge in Arizona on April 27 dismissed with prejudice a suit against Wells Fargo Bank, N.A., arising from a foreclosure and trustee's sale and including claims for fraud and fraudulent inducement (Anne Mercy Kakarala v. Wells Fargo Bank, N.A., No. 10-00208, D. Ariz.; 2012 U.S. Dist. LEXIS 58956). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2064%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WEST PALM BEACH, Fla. - Two remaining claims in a negligent misrepresentation lawsuit against auditing firm KPMG LLP and others are derivative in nature and must be arbitrated pursuant to an arbitration clause, a Florida appeals panel ruled May 2 (KPMG LLP v. Robert Cocchi, et al., Nos. 4D09-4867 and 4D10-988, Fla. App., 4th Dist.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2065%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank HOUSTON - Preclusion under the Securities Litigation Uniform Standards Act of 1998 (SLUSA) does not apply in an investor lawsuit against several entities charged with aiding and abetting violations of Texas securities law, pursuant to Fifth Circuit U.S. Court of Appeals precedent, a federal judge in Texas ruled April 27 in remanding the action to state court (Cesar Garza, et al. v. Proskauer Rose LLP, et al., No. 12-274, S.D. Texas). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2066%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York on May 4 granted in part and denied in part a motion to dismiss filed by defendants that alleged that shareholders failed to plead common-law claims against them concerning misrepresentations the defendants made with regard to a structured investment vehicle (King County, Washington, et al. v. IKB Deutsche Industriebank AG, et al., No. 09-8387, S.D. N.Y.; See May 2010, Page 10). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2067%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - Citing her ruling in a similar securities investor lawsuit over losses sustained as part of an investment in a structured investment vehicle (SIV), which was issued on the same day, a federal judge in New York granted in part and denied in part defendants' motion to dismiss certain common-law tort claims in a May 4 order (Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co., Inc., et al., No. 08-7508, S.D. N.Y.; See September 2009, Page 13, and related story in this issue). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2068%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - The Judicial Panel on Multidistrict Litigation on April 23 ruled that three putative class actions filed by investors in MF Global Holdings Ltd. and related entities should be packaged together and heard in the U.S. District Court for the Southern District of New York (In Re: MF Global Holdings Ltd. Investment Litigation, No. 2338, JPMDL). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2069%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - An investor filed a shareholder derivative lawsuit on April 19 in New York state court against certain current and former executive officers and directors of Citigroup Inc., alleging that the defendants breached their fiduciary duty by failing to rescind Citigroup's 2011 executive compensation package even though shareholders voted against the compensation package (Stanley Moskal v. Vikram Pandit, et al., No. 12-3114, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-3%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2070%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - An investor filed a shareholder derivative lawsuit against several current and former members of Citigroup Inc.'s board of directors, as well as a number of its executive officers, alleging that the defendants breached their fiduciary duty by approving executive compensation packages for many of its senior officers even though the company continues to lose revenue (Jeanne M. Calamore v. Vikram Pandit, et al., No. 651413/2012, N.Y. Sup., New York Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%201%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York on March 30 granted preliminary approval of a $150 million settlement between JPMorgan Chase Bank N.A. and three pension plans on the plans' claims that JPMorgan breached its fiduciary duty of loyalty by investing the plans' and other entities' cash collateral in medium-term notes (MTNs) of Sigma Finance Inc. (SFI) pursuant to its securities lending program while at the same time extending repurchasing financing to Sigma (Board of Trustees of the AFTRA Retirement Fund v. JPMorgan Chase Bank, N.A., No. 09-686; Board of Trustees of the Imperial County Employees' Retirement System v. JPMorgan Chase Bank, N.A., No. 09-3020; The Investment Committee of the Manhattan and Bronx Surface Transit Operating Authority Pension Plan v. JPMorgan Chase Bank, N.A., No. 09-4408, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%202%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York on April 5 granted preliminary approval to a $10 million settlement between Bear Stearns Cos. Inc. and participants in its employee stock ownership plan (ESOP) who alleged that the plan fiduciaries breached their duties under the Employee Retirement Income Security Act by allowing the plan to invest in the company's stock when they knew that Bear Stearns' involvement in the securitized subprime mortgage market made it imprudent to do so (In re Bear Stearns Companies ERISA Litigation, No. 1:08-md-01963, 08 Civ. 2804, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%203%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on April 5 reversed and remanded the dismissal of a suit brought on behalf of a putative class of consumers who incurred certain expenses while enrolled in Bank of America N.A.'s overdraft protection program (ODP) (Eduardo Larin v. Bank of America, N.A., No. 10-56276, 9th Cir.; 2012 U.S. App. LEXIS 7023). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%204%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank OAKLAND, Calif. - Dismissal of a shareholder class action lawsuit against Wells Fargo & Co. for breaching its contract by attempting to redeem on certain trust preferred securities is proper because the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act constituted a capital treatment event under the terms of the securities, a federal judge in California ruled April 12 (Daniel Call v. Wells Fargo & Co., et al., No. 11-5215, N.D. Calif.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%205%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - The U.S. Supreme Court on April 2 denied review of a Third Circuit U.S. Court of Appeals ruling that a bankruptcy trustee failed to sufficiently allege that lenders violated the Sherman Act by conspiring to determine the terms on which they would provide financing to a garment retailer (Jeoffrey L. Burtch v. Milberg Factors, Inc., et al., No. 11-932, U.S. Sup.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%206%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ATLANTA - The 11th Circuit U.S. Court of Appeals on April 16 agreed to rehear en banc its ruling that hedge funds that purchased promissory notes from CompuCredit Holdings Corp. did not violate federal antitrust law by making a collective demand on CompuCredit to pay above-market prices to redeem its notes early (CompuCredit Holdings Corporation v. Akanthos Capital Management, LLC, et al., No. 11-13254, 11th Cir.; See November 2011, Page 20). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%207%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York on April 13 withdrew from a federal bankruptcy court, in part, more than 300 clawback suits filed by the liquidation trustee of Bernard L. Madoff Investment Securities LLC (BLMIS) so that he may address whether the U.S. Supreme Court's ruling in Stern v. Marshall 131 S. Ct. 2594 [2011]) prevents the bankruptcy court from entering a final judgment that would resolve the trustee's claims "to avoid or recover initial or subsequent transfers as fraudulent transfers" (Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, No. 12-mc-0115, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%208%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on April 3 affirmed a district court's order compelling arbitration in a Fair Debt Collection Practices Act (FDCPA) action, disagreeing with the plaintiff appellant's statute of limitations argument (Daniel O'Fallon v. Encore Receivable Mgmt, Inc., et al., No. 11-60730, 5th Cir.; 2012 U.S. App. LEXIS 6633). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%209%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank KANSAS CITY, Mo. - A federal judge granted a Federal Debt Collection Practices Act (FDCPA) plaintiff's motion to file an amended complaint on March 28 because the proposed amended complaint asserts claims that are alleged to have arisen after the plaintiff signed a settlement agreement only releasing the defendant from liability for claims arising before the signing of the agreement (Montgomery v. Portfolio Recovery Associates, LLC, No.12-00018, W.D. Mo.; 2012 U.S. Dist. LEXIS 42678). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2010%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN FRANCISCO - A consumer has properly pleaded a majority of his federal debt collection law claims against a debt collection agency and others for allegedly illegal debt collection actions but has failed to plead his claim under California Business and Professions Code Section 17200, a California federal judge ruled April 9 (Scott Koller v. West Bay Acquisitions, LLC, et al., No. 12-00117, N.D. Calif.; 2012 U.S. Dist. LEXIS 49712). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2011%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN JOSE, Calif. - Defendants in a debt collection practices lawsuit are not entitled to summary judgment by res judicata because a release and settlement agreement in a related state court action expressly excluded the defendants from release, a federal judge in California ruled March 26 (Carlos H. Perez v. Gordon & Wong Law Group, P.C., et al., No. 11-3323, N.D. Calif.; 2012 U.S. Dist. LEXIS 41080). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2012%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PHOENIX - A federal judge in Arizona on April 6 granted a debt collector's motion for summary judgment on a consumer's federal debt collection law claims, ruling that the consumer failed to meet the statute's requirement that dispute of the debt must be made in writing and failed to show that the debt collector further sought any collection on the debt after speaking with the consumer (Sharon Simington v. Clark County Collection Service, No. 10-8236, D. Ariz.; 2012 U.S. Dist. LEXIS 48771). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2013%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DENVER - A federal judge in Colorado on April 10 accepted a federal magistrate judge's recommendation to dismiss a consumer's lawsuit against a debt collector for violations of federal debt collection laws, ruling that the consumer failed to state either of his claims (Lucas DeMaestri v. Verifacts Inc., No. 11-2430, D. Colo.; 2012 U.S. Dist. LEXIS 49858). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2014%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank KANSAS CITY, Kan. - A consumer has failed to show that a debt collector violated any provisions of the Fair Debt Collection Practices Act (FDCPA) when it contacted the consumer in an attempt to collect on a credit card debt, a federal judge in Kansas ruled April 11 in granting the debt collector's motion for summary judgment (James M. Galligan v. FMS, Inc., No. 11-2004, D. Kan.; 20912 U.S. Dist. LEXIS 50476). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2015%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CINCINNATI - A consumer has failed to plead any of her state and federal credit law claims against a lending institution for rejecting a credit inquiry for the consumer's purchase of an automobile, a Sixth Circuit U.S. Court of Appeals panel ruled April 4 (Diane Wells v. Craig & Landreth Cars, Inc., et al., No. 10-6514, 6th Cir.; 2012 U.S. App. LEXIS 6998). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2016%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - A federal judge in Illinois on March 28 partially granted a motion to dismiss in a suit accusing Wachovia Mortgage Corp. of violating the Fair Credit Reporting Act (FCRA) and Real Estate Settlement Procedures Act (RESPA) after an error was made regarding the plaintiffs' loan (Konieczka, et al. v. Wachovia Mortgage Corp., No. 11-00071, N.D. Ill.; 2012 U.S. Dist. LEXIS 42675). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2017%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - An Illinois federal judge on April 13 refused to dismiss or transfer a class suit accusing a college planning services company of violating the Fair Credit Reporting Act (FCRA) (Atif N. Rana, et al. v. College Admissions Assistance, LLC, No. 11-4280, N.D. Ill.; 2012 U.S. Dist. LEXIS 51949). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2018%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MINNEAPOLIS - A genuine issue exists as to whether an arbitration agreement between a credit cardholder and the card's issuer is in place, a federal judge in Minnesota ruled April 5 in holding in abeyance the card issuer's motion to compel arbitration and stay the action (Carol K. Schneider v. Citigroup Inc. d/b/a Citibank [South Dakota], N.A. a/k/a Home Depot, No. 11-3030, D. Minn.; 2012 U.S. Dist. LEXIS 48392). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2019%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - In a putative class action on interlocutory appeal, the Seventh Circuit U.S. Court of Appeals on April 18 determined that Shell Oil defendants did not willfully violate the Fair and Accurate Credit Transactions Act (FACTA) by printing the last four digits of the "account number" on credit card receipts (Natalie Van Straaten v. Shell Oil Products Company LLC, et al., No. 11-8031, 7th Cir.; 2012 U.S. App. LEXIS 7789). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2020%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DALLAS - A federal judge in Texas on April 16 granted in part a plaintiff's motion to compel discovery in a suit in which the plaintiff, which provided credit card marketing and distribution services to a defendant bank, asserts claims for breach of contract and the covenant of good faith (Marketing Investors Corporation v. New Millennium Bank, No. 11-01696, N.D. Texas; 2012 U.S. Dist. LEXIS 52998). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2021%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank TACOMA, Wash. - A federal judge in Washington on April 11 granted in part and denied in part a motion to dismiss a putative class action brought by a plaintiff who says a bank charged her fees for a credit card payment protection service even though she was ineligible for the program (Denton v. Department Store National Bank, No.10-05830, W.D. Wash.; 2012 U.S. Dist. LEXIS 51106). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2022%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN FRANCISCO - A federal judge in California on April 3 granted in part and denied in part a motion to dismiss filed by Bank of America Corp. and its subsidiary FIA Card Services NA in a multidistrict litigation alleging that the bank charged customers for a credit protection plan they did not consent to join (In re: Bank of America Credit Protection Marketing & Sales Practices Litigation, No. 11-md-02269, N.D. Calif.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2023%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN FRANCISCO - In a putative class action on remand from a federal appeals court in which a plaintiff alleges overcharges on military credit cards, a federal judge on March 22 denied the defendant's renewed motion to dismiss as moot and the plaintiff's renewed motion for class certification (Russell v. United States of America, No. 09-03239, N.D. Calif.; 2012 U.S. Dist. LEXIS 39313). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2024%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank JACKSONVILLE, Fla. - A federal judge in Florida on March 26 certified a class in a suit in which a plaintiffs alleges that a restaurant violated the Fair and Accurate Credit Transaction Act (FACTA) when it included his credit card expiration date on a receipt (Bush v. Calloway Consolidated Group River City, Inc., No. 10-00841, M.D. Fla.; 2012 U.S. Dist. LEXIS 40450). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2025%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - In a putative class action in which a plaintiff says Target Corp. violated the Fair and Accurate Credit Transactions Act (FACTA) by including her credit card expiration date on receipts, a federal judge in Illinois on March 30 denied Target's motion for summary judgment, ruling that Target has not demonstrated that it did not provide the plaintiff with a receipt that displayed the expiration or, if it did, that it did not willfully violate FACTA (Todd v. Target Corp., No. 10-05598, N.D. Il.; 2012 U.S. Dist. LEXIS 44362). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2026%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MIAMI - A federal judge in Florida on April 16 denied defendants' motion to dismiss a company's breach of contract claims against them in a credit card chargeback action, ruling that the company has standing to bring its claims (Swipe for Life, LLC v. XM Labs, LLC, et al., No. 10-22337, S.D. Fla.; 2012 U.S. Dist. LEXIS 53039). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2027%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ATLANTA - A Visa credit cardholder filed a consumer class action lawsuit against a provider of electronic transaction processing services in Georgia federal court on April 4, alleging that the company was negligent in failing to safeguard against a breach of its data systems where credit card account information was "exposed to unauthorized third parties" and in failing to notify credit cardholders of the breach in a timely fashion (Natalie Willingham v. Global Payments, Inc., No. 12-1157, N.D. Ga.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2028%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - The Seventh Circuit U.S. Court of Appeals on April 17 affirmed a district court's ruling that a claim against the Federal Deposit Insurance Corp., as receiver for a failed bank, was time-barred by the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) (Craig Campbell v. FDIC, No. 11-1595, 7th Cir.; 2012 U.S. App. LEXIS 7608). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2029%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MOBILE, Ala. - A federal judge in Alabama on April 12 granted summary judgment to a bank that sued a company that defaulted on loans the bank acquired via a purchase agreement with the Federal Deposit Insurance Corp., which was the receiver of a bank that initially issued the loans before it failed (Branch Banking and Trust Company v. Imagine CBQ, LLC, et al., No. 11-00168, S.D. Ala.; 2012 U.S. Dist. LEXIS 52172). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2030%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SACRAMENTO, Calif. - A federal judge in California on April 10 granted the Federal Deposit Insurance Corp.'s motion to strike a defendant's affirmative defense of comparative negligence in a suit in which the FDIC, as receiver for the failed IndyMac Bank F.S.B., alleges wrongful misrepresentations regarding the appraisal of two residential properties (Federal Deposit Insurance Corporation v. Varrasso, et al., No. 11-02628, E.D. Calif.; 2012 U.S. Dist. LEXIS 50443). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2031%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank OKLAHOMA CITY - According to an April 4 order in an Oklahoma federal court, the Federal Deposit Insurance Corp.'s malpractice suit against the former attorneys for the failed First State of Bank of Altus has been settled (Federal Deposit Insurance Corporation v. Andrews Davis PC, et al., No. 11-01221, W.D. Okla.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2032%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MILWAUKEE - In a case in which the Federal Deposit Insurance Corp. was substituted as defendant for a failed bank that was sued for conflict of interest, breach of fiduciary duties, failure to diversify investments and misrepresentation, a federal judge in Wisconsin on April 6 granted the FDIC's motion to dismiss for lack of subject matter jurisdiction (Winkler Holmes v. Federal Deposit Insurance Corporation, et al., No. 11-00211, E.D. Wis.; 2012 U.S. Dist. LEXIS 48811). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2033%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank LAS VEGAS - A federal judge in Nevada on April 4 granted a defendant's motion to dismiss a suit in which the Federal Deposit Insurance Co., as receiver for the failed IndyMac Bank F.S.B., brought breach of contract, negligent misrepresentation and state law claims arising from the appraisal of a property that secured a loan (Federal Deposit Insurance Company v. Simon, et al., No. 11-01001, D. Nev.; 2012 U.S. Dist. LEXIS 47407). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2034%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAVANNAH, Ga. - In a case in which a plaintiff sued the Federal Deposit Insurance Corp. in its capacity as receiver for a failed bank, asserting fraud, breach of contract and other allegations, a federal judge in Georgia on March 30 denied the plaintiff's motion to remand and granted the FDIC's motion for summary judgment, dismissing the suit (Lokey v. Federal Deposit Insurance Corp., et al., No. 11-00146, S.D. Ga.; 2012 U.S. Dist. LEXIS 45579). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2035%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN JUAN, Puerto Rico - Dismissal of a Federal Deposit Insurance Corp. amended complaint is proper under the business judgment rule, among other reasons, the former officers and directors of a failed Puerto Rican bank argue in an April 11 motion to dismiss (Federal Deposit Insurance Corp., as receiver of Westernbank Puerto Rico, v. Frank Stipes Garcia, et al., No. 11-2271, D. Puerto Rico). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2036%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank HOUSTON - The Securities and Exchange Commission sued two former officers of a failed Texas bank in a Texas federal court on April 5, alleging that the defendants misrepresented the bank's financial condition and its exposure to loan delinquencies in violation of federal securities laws (Securities and Exchange Commission v. Anthony J. Nocella, et al., No. 12-1051, S.D. Texas). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2037%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank RALEIGH, N.C. - The Federal Deposit Insurance Corp., as receiver for Cape Fear Bank, sued seven of the bank's former officers and directors, alleging that the defendants negligently approved more than $11 million in bad loans that eventually led to the bank's failure (Federal Deposit Insurance Corp., as receiver for Cape Fear Bank, v. John C. Coburn, et al., No. 12-0082, E.D. N.C.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2038%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ORLANDO, Fla. - The Federal Deposit Insurance Corp., in its role as receiver of a failed Florida bank, sued the bank's former CEO and members of the board of directors in Florida federal court on March 12, alleging that the defendants were negligent in approving millions of dollars in risky loans (Federal Deposit Insurance Corp., as receiver for Florida Community Bank, v. Stephen L. Price, et al., No. 12-148, M.D. Fla.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2039%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - The Seventh Circuit U.S. Court of Appeals on April 3 vacated a district court's dismissal of a suit filed by the bankruptcy trustee of a Ponzi scheme victim mutual funds group against the group's auditor, ruling that the claim against the auditor is sufficient (Ronald R. Peterson, as Chapter 7 trustee for the estates of Lancelot Investors Fund, L.P., et al., v. McGladrey & Pullen, LLP, et al., No.10-3770, 7th Cir.; 2012 U.S. App. LEXIS 6608). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2040%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WEST PALM BEACH, Fla. - A federal judge in Florida on April 12 dismissed with prejudice a putative class action alleging that a Wells Fargo Bank N.A. subsidiary knowingly participated in a $68 million Ponzi scheme and violated state racketeering laws, finding that the plaintiff did not meet the "relatedness" and "continuity" requirements to state a Florida Civil Remedies for Criminal Practices Act (Florida RICO Act) claim (Horace-Manasse v. Wells Fargo Bank N. A., No. 10-81623, S.D. Fla.; 2012 U.S. Dist. LEXIS 51354). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2041%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank FORT LAUDERDALE, Fla. - In a suit filed by the receiver in a Ponzi scheme suit, a federal judge in Florida on April 10 granted in part the receiver's motion to compel better discovery responses from a defendant (Sallah v. Worldwide Clearing, LLC, et al., No. 10-62264, S.D. Fla.; 2012 U.S. Dist. LEXIS 50396). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2042%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank COLUMBIA, S.C. - A federal judge in South Carolina on March 27 granted a receiver's motion for a temporary restraining order enjoining defendants alleged to have profited from a Ponzi scheme from transferring or otherwise encumbering certain properties (Ashmore v. Carr, et al., No.12-00434, D. S.C.; 2012 U.S. Dist. LEXIS 41591). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2043%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank HARRISBURG, Pa. - In a Ponzi scheme suit, a federal judge in Pennsylvania on April 4 denied third-party defendants' motion for summary judgment, finding that a defendant/third-party plaintiff effectively assigned claims regarding client settlement funds (Strayer v. Bare, et al., No. 06-02068, M.D. Pa.; 2012 U.S. Dist. LEXIS 47490). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2044%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - In a derivative suit arising from Federal National Mortgage Association's (Fannie Mae) accounting issues, the District of Columbia Circuit U.S. Court of Appeals on March 30 affirmed an order substituting Fannie Mae's conservator, the Federal Housing Finance Agency (FHFA), as plaintiff, reversed the denial of the FHFA's motion for voluntary dismissal and vacated as moot the granting of Fannie Mae's motion to dismiss on the grounds of claim preclusion (James Kellmer v. Franklin Raines, et al., No. 09-5253, D.C. Cir.; 2011 U.S. App. LEXIS 26245). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2045%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - A federal judge in Wisconsin did not err in dismissing a retirement system's amended securities class action complaint against MGIC Investment Corp. and others because the retirement system failed to show that the defendants issued any misrepresentations in violation of the federal securities laws, a Seventh Circuit U.S. Court of Appeals panel ruled April 12 (Fulton County Employees' Retirement System v. MGIC Investment Corp., et al., No. 11-1080, 7th Cir.; 2012 U.S. App. LEXIS 7382; See December 2011, Page 26). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2046%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York did not err in determining that shareholders in a securities class action multidistrict litigation against Citigroup Inc. and two of its subsidiaries failed to show that the defendants' conduct in underwriting and/or selling auction-rate securities was deceptive, a Second Circuit U.S. Court of Appeals panel ruled March 27 in a summary order (BIV-NY, et al. v. Smith Barney, et al., No. 11-1270, 2nd Cir.; 2012 U.S. App. LEXIS 6185). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2047%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW HAVEN, Conn. - A federal judge in Connecticut on April 17 dismissed a state law claim from a putative class action arising from the collection of a student loan debt, agreeing with the defendant that the claim is expressly preempted by the Higher Education Act of 1965 (HEA) (Linsley v. FMS Investment Corp., No. 11-00961, D. Conn.; 2012 U.S. Dist. LEXIS 53735). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2048%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank GAINESVILLE, Ga. - A federal judge in Georgia on April 12 ruled that a suit in a which a plaintiff is suing the U.S. Department of Education for reinstating his student loans after discharging them due to disability can continue, finding that the action is not frivolous (Faison v. United States Department of Education, No. 11-00268, N.D. Ga.; 2012 U.S. Dist. LEXIS 51508). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2049%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW ORLEANS - A federal judge in Louisiana on March 22 granted the United States summary judgment against a defendant who defaulted on a student loan, rejecting the debtor's arguments that he was never given notice of the default and that summary judgment would be premature (United States of America v. Roth, No. 11-00107, E.D. La.; 2012 U.S. Dist. LEXIS 38801). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2050%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PADUCAH, Ky. - A federal judge in Kentucky on March 26 granted in part a defendant student loan lender's motion to dismiss a suit in which the plaintiffs say the dean of a defunct law school and the lender enriched themselves by making the lender the exclusive source for student loans at the school (Brown, et al. v. Student Loan X-Press, et al., No. 11-00090, W.D. Ky.; 2012 U.S. Dist. LEXIS 40878). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2051%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAVANNAH, Ga. - A federal judge in Georgia on March 23 denied a plaintiff's motion to remand and said he intends to convert a motion to dismiss to a motion for summary judgment in a suit in which the plaintiff says the defendants illegally garnished her wages to repay a defaulted student loan (Moss v. Premiere Credit of North America, LLC, et al., No. 11-00123, S.D. Ga.; 2012 U.S. Dist. LEXIS 40345). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2052%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank TUCSON, Ariz. - A federal judge in Arizona on April 18 denied JP Morgan Chase Bank N.A.'s motion to dismiss a suit alleging that it violated the Telephone Consumer Protection Act (TCPA) and invaded the plaintiffs' privacy by making more than 100 phone calls after the plaintiffs defaulted on their mortgage (Shupe, et al. v. JP Morgan Chase Bank of Arizona, No. 11-00501, D. Ariz.; 2012 U.S. Dist. LEXIS 54285). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2053%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - A federal judge in Illinois on April 2 denied a bank's motion to compel arbitration and stay proceedings in a suit in which a plaintiff alleges that the bank made unauthorized phone calls in an attempt to collect on a loan in violation of the Telephone Consumer Protection Act (TCPA) (Pereira v. Santander Consumer USA, Inc., No. 11-08987, N.D. Ill.; 2012 U.S. Dist. LEXIS 46155). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2054%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank STATESVILLE, N.C. - In a case in which a plaintiff says a collection agency violated the Telephone Consumer Protection Act (TCPA), the Fair Debt Collection Practices Act (FDCPA) and state law, a federal judge in North Carolina on March 29 granted in part and denied in part the plaintiff and defendant's motions to compel discovery responses (Jenkins v. G. C. Services L. P., No. 11-00059, W.D. N.C.; 2012 U.S. Dist. LEXIS 43418). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2055%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank LOS ANGELES - An investor has failed to properly plead its Massachusetts state securities law claims against Countrywide Financial Corp. and others regarding the investor's purchase of certain mortgage-backed securities (MBS) based on allegedly false and misleading information, a federal judge in California ruled April 16 in substantially dismissing the investor's amended complaint (In re Countrywide Financial Corp. Mortgage-Backed Securities Litigation, No. 11-ML-02265-MRP [MANx]; [Massachusetts Mutual Life Insurance Co. v. Countrywide Financial Corp., et al., No. 11-10414], C.D. Calif.; See August 2011, Page 20). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2056%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A New York state court judge on March 28 dismissed a securities lawsuit seeking to intervene in Bank of America's $8.5 billion settlement over Countrywide Home Loans Inc.'s sale of subprime residential mortgage-backed securities, ruling that the pooling and servicing agreement for the securities bars the plaintiffs from bringing the action (Walnut Place LLC, et al. v. Countrywide Home Loans Inc., et al., No. 650497/2011, N.Y. Sup., New York Co.; See March 2011, Page 27). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2057%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - Remand of a mortgage-backed securities (MBS) lawsuit to New York state court is not proper because the Federal Deposit Insurance Corp. has been named as a party and has filed a removal notice to federal court, a New York federal court judge ruled March 27 (Allstate Bank, et al. v. JP Morgan Chase Bank, NA, et al., No. 11-1869, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2058%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - Ambac Assurance Corp. and its subsidiary sued J.P. Morgan Chase & Co. and others in New York state court on March 30, alleging that the defendants fraudulently induced them into purchasing millions of dollars of risky residential mortgage-backed securities (RMBS) (Ambac Assurance Corp., et al. v. EMC Mortgage LLC, et al., No. 651031-2012, N.Y. Sup., New York Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2059%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank OMAHA, Neb. - A federal judge in Nebraska on April 13 denied a defendant's motion for judgment on the pleadings in a putative class action that alleges violations of the Fair and Accurate Credit Transaction Act of 2003 (FACTA) regarding a debit card receipt (Keith v. Back Yard Burgers of Nebraska, Inc., et al., No. 11-00135, D. Neb.; 2012 U.S. Dist. LEXIS 52012). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2060%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank HARRISBURG, Pa. - In a case in which a plaintiff says a credit union violated the Electronic Funds Transfer Act (EFTA) by charging him an ATM fee without posting a notice of the fee, a federal judge in Pennsylvania on March 28 granted the credit union's motion for summary judgment, finding that the plaintiff presented no evidence to support his allegations (Riviello v. Pennsylvania State Employees Credit Union, et al., No. 11-01533, M.D. Pa.; 2012 U.S. Dist. LEXIS 44025). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2061%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ST. LOUIS - Dismissal of a consumer class action lawsuit alleging a violation of the Electronic Funds Transfer Act (EFTA) is not proper because a bank's offer of judgment did not extend to putative class members, a federal judge in Missouri ruled March 30 (Gary Mertz v. Lindell Bank & Trust Co., No. 10-2098, E.D. Mo.; 2012 U.S. Dist. LEXIS 44835). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2062%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DALLAS - A federal judge in Texas on April 10 granted in part a plaintiff bank's motion for summary judgment in a suit in which the bank accuses a law office of breach of contract and other violations arising from a line of credit the bank extended to the firm (Regions Bank v. Law Offices of Sherin Thawer PC, et al., No. 11-01285, N.D. Texas; 2012 U.S. Dist. LEXIS 50120). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2063%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank FRESNO, Calif. - A federal judge in California on April 9 granted JP Morgan Chase Bank N.A.'s motion to dismiss a suit in which a plaintiff says the bank induced him into accepting a "risky" subprime mortgage loan on which he defaulted, leading to a foreclosure on his property (Ayon v. JP Morgan Chase Bank, N.A., No. 12-00355, E.D. Calif.; 2012 U.S. Dist. LEXIS 49650). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2064%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - The MF Global Assurance Co. Ltd., an affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on March 23 filed a brief in the U.S. Bankruptcy Court for the Southern of New York supporting an order that it may satisfy its obligations under the liability policies it issued to MFGH (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2065%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN FRANCISCO - Consumers claiming that businesses used banking information obtained from payday loan applications to create unauthorized checks to pay for coupon services must amend their California unfair competition law (UCL) claims to allege where the conduct occurred, a federal judge held March 22. The consumers cannot, however, seek restitution from the banks on which the funds were drawn, the judge said (Amber Kristi Marsh and Stacie Evans, et al. v. Zaazoom Solutions LLC, et al., No. 11-5226, N.D. Calif.; 2012 U.S. Dist. LEXIS 37758). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2066%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank JEFFERSON CITY, Mo. - The sponsor of 401(k) plans breached its fiduciary duties under the Employee Retirement Income Security Act by failing to monitor the record-keeping fees paid by the plans and by failing to negotiate rebates from the investment companies that offered products to the plans' participants, a federal judge in Missouri ruled March 31 (Ronald Tussey, et al. v. ABB, Inc., et al., No. 2:06-CV-04305-NKL, W.D. Mo.; 2012 U.S. Dist. LEXIS 45240). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2067%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - The filing of financial crisis-related securities lawsuits continued to drop in 2011, while securities lawsuit filings regarding mergers and acquisitions (M&A) emerged as a growing area of litigation, according to an annual study issued by Pricewaterhouse Coopers (PwC) on April 11. http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-2%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2068%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - JPMorgan Chase Bank NA on April 3 agreed to pay $20 million to settle a U.S. Commodity Futures Trading Commission (CFTC) suit alleging that it mishandled Lehman Brothers Inc. customers' funds during Lehman's collapse (In re: JPMorgan Chase Bank NA, No. 12-17, CFTC). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%201%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank HOUSTON - Convicted multimillion dollar Ponzi scheme mastermind R. Allen Stanford sought a new trial in Texas federal court on March 20, arguing that he was deprived of his right to a fair trial under the Sixth Amendment to the U.S. Constitution (United States of America v. Robert Allen Stanford, No. 09-342, S.D. Texas; See January 2012, Page 19, and related story in this issue). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%202%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank HOUSTON - Two days after finding Texas financier R. Allen Stanford guilty on 13 criminal charges relating to his operation of a massive Ponzi scheme, a federal jury in Texas on March 8 returned a special verdict finding that Stanford must forfeit $330 million held in 29 financial institutions abroad, according to a press release issued by the Office of the U.S. Attorney for the Southern District of Texas (United States of America v. Robert Allen Stanford, No. 09-342, S.D. Texas; See January 2012, Page 19, and related story in this issue). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%203%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank HOUSTON - A federal district court did not abuse its discretion when it denied a party's motion to modify or lift the receivership order for Stanford International Bank Ltd. because it properly determined that "payment of the letter of credit 'will not divest the Receivership Estate of property since neither the letter of credit nor its proceeds are property of the Receivership Estate under the Receivership Order,'" a Fifth Circuit U.S. Court of Appeals panel ruled March 8 (Securities and Exchange Commission v. Ralph S. Janvey, No 11-10355, 5th Cir.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%204%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - Lehman Brothers Holding Co. Inc. on Feb. 28 agreed to a $1 billion settlement that resolves $2.3 billion in claims brought by the closed bank's affiliates based in Bermuda, according to a brief the bank filed in a New York bankruptcy court (In re: Lehman Brothers Holding Inc. et al, No. 08-13555, Chapter 11, S.D. Bkcy.; See February 2012, Page 6). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%205%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - The owners of Major League Baseball's New York Mets and the liquidation trustee of Bernard L. Madoff Investment Securities LLC (BLMIS) agreed on March 19 to a $162 million settlement of claims relating to the defendants' alleged profiting from Madoff's massive Ponzi scheme (Irving H. Picard v. Saul B. Katz, et al., No. 11-3605, S.D. N.Y.; See January 2012, Page 43). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%206%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - The liquidation trustee for Bernard L. Madoff Investment Securities LLC (BLMIS) on March 22 appealed a federal judge's ruling that he failed to plead his Racketeer Influenced and Corrupt Organizations Act claims against defendants alleged to have conspired to funnel investments into BLMIS (Irving H. Picard v. Sonja Kohn, et al., No. 12-1106, 2nd Cir.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%207%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ATLANTA - The 11th Circuit U.S. Court of Appeals in a March 1 unpublished opinion ordered a putative class suing a bank for allegedly illegal overdraft fees to take the case to arbitration, overturning an underlying ruling (In Re: Checking Account Overdraft Litigation [Jeffrey Buffington, Jeanette Buffington, on behalf of themselves and all others similarly situated v. SunTrust Banks Inc.], No. 11-14316, 11 Cir.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%208%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ATLANTA - The 11th Circuit U.S. Court of Appeals on March 21 ruled that an arbitrator should decide whether a putative class action against M&T Bank Corp. regarding checking account overdraft fees goes to arbitration, reversing the decision of a federal court (In Re: Checking Account Overdraft Litigation [Maxine Aarons Given, individually and on behalf of all others similarly situated v. M&T Bank Corp., et al.], No. 11-14282, 11th Cir.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%209%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - The District of Columbia U.S. Circuit Court of Appeals on March 6 dismissed the National Automobile Dealers Association's (NADA) petition for review of the Federal Trade Commission's interpretation of statutory language contained in the amended Fair Credit Reporting Act (FCRA), saying a challenge to such an interpretation must begin in a district court (National Automobile Dealers Association v. Federal Trade Commission, No. 11-1313, D.C. Cir.; 2012 U.S. App. LEXIS 4577). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2010%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PHILADELPHIA - A federal judge in Pennsylvania on March 16 granted in part a defendant's motion for sanctions against the plaintiff's counsel in a suit that alleged violations of the Fair Credit Reporting Act (FCRA) (Price v. Trans Union LLC, et al., No. 09-01332, E.D. Pa.; 2012 U.S. Dist. LEXIS 36175). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2011%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - A federal judge in Illinois on March 1 granted summary judgment in favor of a bank in a suit in which a plaintiff says the Fair Credit Reporting Act (FCRA) prohibited the bank from obtaining her credit report, finding that the bank legally obtained the report under the statute (Aleshire v. Harris N.A., No. 08-07367, N.D. Ill.; 2012 U.S. Dist. LEXIS 26827). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2012%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank OAKLAND, Calif. - A federal judge in California on March 9 granted a defendant bank's motion to compel arbitration in a case in which the plaintiff, a former credit cardholder with the bank, alleges that the bank willfully and negligently failed to establish or follow reasonable procedures to ensure accuracy in the preparation of credit reports, ruling that an arbitration provision in a cardholder agreement is enforceable (Daugherty v. Experian Information Solutions Inc., et al., No. 11-01285, N.D. Calif.; 2012 U.S. Dist. LEXIS 30915). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2013%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SCRANTON, Pa. - A federal judge on March 12 granted a bank's motion to dismiss a complaint alleging that it violated the Fair Credit Reporting Act (FCRA) because it failed to mark the plaintiff's debt as disputed when reporting the results of a dispute investigation to one or more consumer reporting agencies (Noel v. First Premier Bank, et al., No. 12-00050, M.D. Pa.; 2012 U.S. Dist. LEXIS 32595). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2014%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - The Securities and Exchange Commission and Citigroup Global Markets Inc. face a substantial likelihood of success in overturning a federal judge's denial of their $285 million settlement agreement, a Second Circuit U.S. Court of Appeals panel ruled March 15 in a per curiam opinion (United States Securities & Exchange Commission v. Citigroup Global Markets Inc., Nos. 11-5227, 11-5375 and 11-5242, 2nd Cir.; See December 2011, Page 21). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2015%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York on March 21 substantially denied defendants' motions to dismiss a securities class action lawsuit against The Goldman Sachs Group Inc., one of its subsidiaries and others for alleged federal securities law violations in the marketing and structuring of two offerings of collateralized debt obligations (CDOs), ruling that the lead plaintiff has properly pleaded all but its market manipulation claims against certain defendants (Dodona I, LLC v. Goldman, Sachs & Co., et al., No. 10-7497, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2016%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York on March 20 substantially denied dismissal of a securities lawsuit filed by the successor-in-interest to a credit union against Barclays Capital Inc. (BarCap) and others associated with a collateralized debt obligation (CDO) that was sold to the credit union, ruling that the successor-in-interest had properly pleaded a majority of the claims (Space Coast Credit Union, as Successor in Interest to Eastern Financial Florida Credit Union, v. Barclays Capital Inc., et al., No. 11-2802, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2017%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A New York state court justice erred in denying dismissal of a fraudulent inducement lawsuit filed by UBS Securities LLC and UBS AG, London Branch, that seeks to recover $686 million in losses in a collateralized debt obligation (CDO) transaction, a New York appellate panel ruled March 13 (UBS Securities LLC, et al. v. Highland Financial Partners, L.P., et al., No. 650097/09, N.Y. Sup., App. Div., 1st Dept.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2018%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - Defendants in a securities lawsuit filed by Allstate Insurance Co., two of its subsidiaries and two Allstate-sponsored Employee Retirement Income Security Act plans (collectively, Allstate) have failed to show that removal of the action from state court is proper under the Edge Act, a federal judge in New York ruled March 14 in remanding the action to state court (Allstate Insurance Co., et al. v. CitiMortgage, Inc., et al., No. 11-1927, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2019%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge erred in denying remand of a New York Civil Practice Law and Rules Article 77 proceeding for the court approval of an $8.5 billion Bank of America Corp. settlement pursuant to the Class Action Fairness Act of 2005 (CAFA), a Second Circuit U.S. Court of Appeals panel ruled Feb. 27 in a per curiam opinion (BlackRock Financial Management Inc., et al. v. The Segregated Account of Ambac Assurance Corp., et al., No. 11-5309, 2nd Cir.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2020%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York on March 16 granted two motions to dismiss a shareholder class action lawsuit alleging that Bank of America Corp. (BAC) and others misrepresented the investment quality of securities it sold to the shareholders in violation of federal securities law, ruling that the lead plaintiffs have failed to plead any materially false and misleading statements (NECA-IBEW Pension Trust Fund, et al. v. Bank of America Corp., et al., No. 10-0440, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2021%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BOSTON - The "sue and be sued" clause of a bank's congressional charter allows for the bank's lawsuit against a number of defendants that misrepresented the investment quality of certain mortgage-backed securities they sold to the bank to be removed to federal court, a federal judge in Massachusetts ruled March 9 (Federal Home Loan Bank of Boston v. Ally Financial, Inc., et al., No. 11-10952, D. Mass.; 2012 U.S. Dist. LEXIS 31483). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2022%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A financial guarantor sued EMC Mortgage LLC and others in New York state court on March 15, alleging that the defendants fraudulently induced the guarantor into insuring a mortgage-backed securities (MBS) transaction that has lost more than $75 million (Assured Guaranty Corp. v. EMC Mortgage LLC, et al., No. 650805/2012, N.Y. Sup., New York Co.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2023%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - An insurer sued Ally Financial Inc., certain of its subsidiaries and others in New York federal court on March 5, arguing that the defendants misrepresented the business and financial condition of one of the subsidiaries when it sought an insurance policy on a nearly $693 million offering of residential mortgage-backed securities (Financial Guaranty Insurance Co. v. Ally Financial, Inc., et al., No. 12-1601, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2024%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - The Third Circuit U.S. Court of Appeals in a March 1 nonprecedential opinion reversed the dismissal of a suit in which a plaintiff accused a debt collector of not making disclosures required by the Fair Debt Collection Practices Act (FDCPA), finding that a district court improperly determined that the debt collector was a messenger service and not subject to the FDCPA (Cynthia A. Siwulec v. JM Adjustment Services LLC, No. 11-2086, 3rd Cir.; 2012 U.S. App. LEXIS 4201). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2025%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - An appellate panel lacks jurisdiction to hear an appeal of a federal district court's ruling dismissing a debt collection lawsuit because the appeal was not timely filed, a Seventh Circuit U.S. Court of Appeals panel ruled March 7 (Victor Gulley v. Blitt & Gaines, P.C., et al., No. 11-2548, 7th Cir.; 2012 U.S. App. LEXIS 4764). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2026%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MIAMI - A law firm violated provisions of the Fair Debt Collection Practices Act (FDCPA) by falsely representing that a debt collector was a "creditor" in a debt collection notice for a loan on which the consumer defaulted, an 11th Circuit U.S. Court of Appeals panel ruled in an opinion made available on March 19 (Michael Bourff v. Rubin Lublin LLC, No. 10-14618, 11th Cir.; 2012 U.S. App. LEXIS 5613). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2027%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DALLAS - A federal judge in Texas on March 5 granted in part Bank of America NA (BOA) and Bank of New York Mellon's (BONY) motion to dismiss in a suit alleging violations of the Fair Debt Collection Practices Act (FDCPA) and Texas law arising from the foreclosure of the plaintiffs' residence (Garcia, et al. v. Bank of America NA, et al., No.12-00062, N.D. Texas; 2012 U.S. Dist. LEXIS 28554). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2028%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PASADENA, Calif. - A credit reporting agency did not violate provisions of the Fair Credit Reporting Act (FCRA) when it continued to publish a credit card delinquency on a consumer's credit report because the consumer has failed to show that the report was inaccurate, a Ninth Circuit U.S. Court of Appeals panel ruled March 13 in a memorandum opinion (David Kruse v. Experian Information Solutions, Inc., No. 10-56564, 9th Cir.; 2012 U.S. App. LEXIS 5215). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2029%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN DIEGO - A consumer has failed to plead any of his state credit-reporting act and unfair competition law claims against his former lender and three credit-reporting agencies, a federal judge in California ruled March 14 in dismissing the consumer's amended complaint with prejudice (Ronnie Miller v. Bank of America, National Association, et al., No. 11-2588, S.D. Calif.; 2012 U.S. Dist. LEXIS 34412). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2030%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on March 20 affirmed the dismissals of two Ponzi scheme class actions filed against JP Morgan Chase Bank N.A. as the successor to Washington Mutual Inc. (WaMu) (Benson, et al., v. JP Morgan Chase Bank, N.A., No. 10-17402; Lowell v. JP Morgan Chase Bank, N.A., No. 10-17404, 9th Cir.; 2012 U.S. App. LEXIS 5752). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2031%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Feb. 23 reversed the dismissal of claims against a defendant in a suit arising from a Ponzi scheme, finding that a district court had personal jurisdiction over the defendant (David Schneider v. Michael Hardesty, et al., No. 09-3892, 6th Cir.; 2012 U.S. App. LEXIS 3569). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2032%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SALT LAKE CITY - A federal judge in Utah on Feb. 23 declined to dismiss a criminal indictment against an alleged Ponzi scheme perpetrator, disagreeing with the defendant's contention that the government used privileged information in the indictment (USA v. Koerber, No. 09-00302, D. Utah). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2033%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BOSTON - In an interpleader action filed by Sovereign Bank to determine whether the United States or other defendants are entitled to $43,353.17 allegedly subject to seizure by the United States in connection with a Ponzi scheme, a federal judge in Massachusetts on March 9 granted the United States' motion for judgment on the pleadings (Sovereign Bank v. Saraceno, et al., No. 11-10429, D. Mass.; 2012 U.S. Dist. LEXIS 31590). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2034%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PHOENIX - A federal judge in Arizona on March 20 certified two classes in a suit in which plaintiffs say the attorneys for two financial companies participated in a Ponzi scheme (Facciola, et al. v. Greenberg Traurig, LLP, et al., No. 10-01025, D. Ariz.; 2012 U.S. Dist. LEXIS 37133). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2035%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on March 16 affirmed the dismissal of claims against a law firm that was hired by Discover Bank to collect on a credit card debt (Heather Hemmingsen v. Messerli & Kramer, P.A., No. 11-2029, 8th Cir.; 2012 U.S. App. LEXIS 5502). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2036%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MILWAUKEE - A federal judge in Wisconsin on Feb. 27 granted in part and denied in part a motion to approve class notice in a case in which a plaintiff alleges that a hotel violated the Fair and Accurate Credit Transaction Act (FACTA) when it displayed more than the last five digits of his credit card number on a receipt it issued (Chris Armes v. Sogro Inc., d/b/a Budget Host Diplomat Hotel, No. 08-00244, E.D. Wis.; 2012 U.S. Dist. LEXIS 24487). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2037%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - A federal judge in Illinois on March 9 granted in part a motion by plaintiffs to compel the production of documents being withheld under a claim of privilege in a case in which the plaintiffs say that Target Corp. sent unsolicited Target VISA cards to Target credit cardholders and that they would not have activated the Target VISA if they had known doing so would close their Target credit card or if they know that the Target VISA had stricter underwriting guidelines (Acosta v. Target Corp., et al., No. 05-07068, N.D. Ill.; 2012 U.S. Dist. LEXIS 31655). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2038%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CLEVELAND - A federal judge in Ohio on March 14 granted in part the defendants' motion to dismiss, denied a defendant's motion to compel arbitration and dismissed the plaintiff's claims for monetary relief in a suit arising from the plaintiff's agreement with a debt resolution service (Bowie v. Clear Your Debt, LLC, et al., No. 11-01266, N.D. Ohio; 2012 U.S. Dist. LEXIS 33981). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2039%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BALTIMORE - A federal judge in Maryland on March 2 granted summary judgment in favor of a wine and spirits store that was sued for charging allegedly improper ATM fees, finding that the Electronic Fund Transfer Act's (EFTA) safe harbor provision precluded liability (Buechler v. Your Wine & Spirit Shoppe Inc., No. 11-03280, D. Md.; 2012 U.S. Dist. LEXIS 27511). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2040%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank OMAHA, Neb. - A federal judge in Nebraska on March 13 granted the plaintiff's request to defer ruling on the defendant's motion for summary judgment in a putative class action in which the plaintiff says the defendant violated the ATM fees notice requirements of the Electronic Fund Transfer Act (EFTA) (Charvat v. ACO Inc., No. 12-00013, D. Neb.; 2012 U.S. Dist. LEXIS 33176). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2041%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank ATLANTA - A federal judge in Georgia on Feb. 27 granted in part and denied in part defendants' motions to dismiss in a suit filed by the Federal Deposit Insurance Corp. (FDIC), as receiver of a failed bank, against former bank officials (Federal Deposit Insurance Corp. v. Skow, et al., No. 11-0111, N.D. Ga.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2042%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - In a case in which United Western Bank sued to remove the Federal Deposit Insurance Corp. as its receiver, a federal judge in Washington on Feb. 24 issued an order limiting the distribution and restricting the use of FDIC materials in the case (United Western Bank v. Office of the Comptroller of the Currency, et al., No. 11-00408, D. D.C.; 2012 U.S. Dist. LEXIS 23838). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2043%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank DETROIT - A federal judge on March 21 granted the Federal Deposit Insurance Corp.'s motion to strike the plaintiff's jury demand in a suit in which the former general counsel for a bank taken into receivership by the FDIC sued the FDIC in an attempt to recover attorney fees for work the firm did before the bank went into receivership (Commercial Law Corp., P.C. v. Federal Deposit Insurance Corp., No. 10-13275, E.D. Mich.; 2012 U.S. Dist. LEXIS 38013). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2044%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank GAINESVILLE, Ga. - The Federal Deposit Insurance Corp. (FDIC) sued two former executives of a failed bank on Feb. 24, alleging that the defendants caused the bank to lose more than $11 million, which helped contribute to the failure (Federal Deposit Insurance Corp., as Receiver for Community Bank & Trust of Cornelia, Ga. v. Charles M. Miller, et al., No. 12-42, N.D. Ga.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2045%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WILMINGTON, Del. - A Delaware chancellor on Feb. 27 stopped the proposed sale of BankAtlantic Bancorp Inc.'s (Bancorp) prime assets to BB&T Corp., finding that the sale would violate an agreement with Bancorp's investors and that the "balance of hardships favors the issuance of permanent injunctive relief"(In re: BankAtlantic Bancorp Inc. Litigation, No. 7068, Del. Chanc.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2046%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York did not err in dismissing a consumer's lawsuit against his bank and a debt collector for freezing his bank accounts and using funds from those accounts to pay on a debt because the consumer's Social Security Act claim was time-barred, a Second Circuit U.S. Court of Appeals panel ruled Feb. 28 in a summary order (Robert A. Spira v. J.P. Morgan Chase & Co., et al., No. 10-4590, 2nd Cir.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2047%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank PHILADELPHIA - The Third Circuit U.S. Court of Appeals on March 13 affirmed the dismissal of a plaintiff's suit alleging breach of contract and breach of fiduciary duties against a university relating to a student loan and the university's failure to refund half of his tuition after he withdrew from classes (Thomas v. Nova Southeastern University, No. 11-3224, 3rd Cir.; 2012 U.S. App. LEXIS 5259). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2048%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank MINNEAPOLIS - Citibank has agreed to pay $2.3 million to settle a proposed class action suit accusing the bank of charging excessive interest on student loans made to armed forces members in violation of the Servicemembers Civil Relief Act (SCRA), according to a document filed March 15 in a Minnesota federal court (Olson v. Citibank [New York State], et al., No. 12-02992). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2049%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WILMINGTON, Del. - A federal judge in Delaware on March 19 recommended that summary judgment be granted in favor of the U.S. government in a suit in which the government says a defendant defaulted on student loans (USA v. Pearson, No. 10-00442, D. Del.; 2012 U.S. Dist. LEXIS 36189). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2050%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CEDAR RAPIDS, Iowa - A federal judge in Iowa on March 7 granted the United States' motion for summary judgment against a defendant who defaulted on a federal student loan, rejecting the defendants' arguments that the United States' claim was barred by the statute of limitations, that the action was not initiated by a proper authority and that the United States failed to show that the default occurred (United of America v. Rosenstrater, No. 11-04069, N.D. Iowa; 2012 U.S. Dist. LEXIS 30324). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2051%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SYRACUSE, NY - A federal judge in New York on March 2 granted default judgment in favor of the U.S. government, which filed a suit to collect on a defendant's defaulted student loans, but denied the government's request for court filing fees because the docket reflects that the government did not actually pay the fees (United States of America v. Simmons, No. 10-01272, N.D. N.Y.; 2012 U.S. Dist. LEXIS 27787). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2052%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CLARKSBURG, W.Va. - A federal judge in West Virginia on March 7 granted the plaintiffs' motion to remand to a state court a putative class action against PNC Mortgage Corp. alleging abusive loan-servicing practices (Pirillo, et al. v. PNC Mortgage Corp., No. 12-00007, N.D. W.Va.; 2012 U.S. Dist. LEXIS 29730). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2053%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank NEW YORK - A federal judge in New York on March 6 granted a bank's motion to dismiss a suit that brought fraud allegations connected to the bank's involvement in a tax shelter structure and the loans it provided in pursuit of that tax scheme (Gonzales, et al. v. Royal Bank of Scotland Group plc, No.11-01435, S.D. N.Y.). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2054%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BOSTON - A federal judge in Massachusetts on March 13 partially granted a motion to dismiss in a suit bringing claims under the Equal Credit Opportunity Act (ECOA), the Truth in Lending Act (TILA) and the Fair Debt Collection Practices Act (FDCPA) (Marley v. Bank of America Corp., et al., No.10-10885, D. Mass.; 2012 U.S. Dist. LEXIS 33158). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2055%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank CHICAGO - A federal judge in Illinois on March 14 granted in part and denied in part motions for summary judgment filed by plaintiffs and defendants in a suit in which the plaintiffs seek rescission of loans and statutory damages under the Truth in Lending Act (TILA) (Iroanyah, et al v. Bank of America, N.A., et al., No.09-00094, N.D. Ill.; 2012 U.S. Dist. LEXIS 34011). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2056%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank BOSTON - Trustees of a profit-sharing plan and trust may have counterclaims brought against them only in their capacity as trustees and not as individuals, a federal judge in Massachusetts ruled March 8 in dismissing the trustees' complaint seeking to enjoin Goldman Sachs & Co. from suing them as individuals (Arthur T. Demoulas, et al. v. Goldman, Sachs & Co., No. 11-11368, D. Mass.; 2012 U.S. Dist. LEXIS 30508). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2057%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank SAN FRANCISCO - The California Supreme Court on March 14 agreed to decide whether Congress' repeal of the private right of action in the Truth in Savings Act (TISA) provides a safe harbor from unfair competition law (UCL) actions, according to the docket (Harold Rose, et al. v. Bank of America, N.A., No. S199074, Calif. Sup.; See December 2011, Page 51). http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2058%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - The Federal Deposit Insurance Corp.'s Quarterly Banking Profile for the fourth quarter of 2011 released Feb. 28 pointed to recovery in the banking industry, as U.S. banks earned $26.3 billion and the "problem list" of banks declined for the third consecutive quarter, according to the report. http://www.lexis.com/research/xlink?canceldest=form&keyenum=25271&keytnum=0&searchtype=get&search=4-1%20LexisNexis%20Financial%20Serv.%20Lit.%20Rep.%2059%20(2012)&view=full&ORIGINATION_CODE=00144 target=_blank WASHINGTON, D.C. - A nonprofit educational foundation sued the Federal Housing Finance Agency (FHFA) in Washington federal court on March 5, arguing that the FHFA failed to provide certain information regarding mortgage-backed securities purchased by Fannie Mae and Freddie Mac sought by the foundation under the Freedom of Information Act (FOIA) and for failing to properly respond to the foundation's appeal to its FOIA request denial within the statutorily required timeframe (Judicial Watch, Inc. v. Federal Housing Finance Agency, No. 12-0346, D. D.C.).