Litigation

Recent Posts

Duane Morris Alerts: Electronic Funds Transfer Act: Class Action Surge Highlighted By Recent Cases
Posted on 15 Nov 2011 by Duane Morris LLP

The Electronic Funds Transfer Act, 15 U.S.C. § 1693 et seq. (EFTA), and its regulations promulgated by the Federal Deposit Insurance Corporation (FDIC), Reg E, 12 C.F.R. sect; 205.16, require, in relevant part, that banks charging a fee to non-bank... Read More

A Dismissal And A Settlement In Failed Bank Shareholder Lawsuits
Posted on 20 May 2011 by Kevin M. LaCroix

One of the ways in which the current wave of bank failures is different from the failures during the S&L crisis is that this time around, by comparison to that prior period, a number of the bank closures have been accompanied by shareholder lawsuits... Read More

Jury Enters $168.8 Million Verdict Against Former IndyMac Executives
Posted on 10 Dec 2012 by Michael J. Lello

LOS ANGELES - (Mealey's) A jury in a California federal court on Dec. 7 entered a $168.8 million verdict against three former officers of the failed IndyMac Bank F.S.B., finding that the individuals had been negligent and breached their fiduciary... Read More

FDIC Files Latest Lawsuit In Its Role As Receiver Of Failed Bank
Posted on 24 Jan 2012 by Kevin M. LaCroix

In the FDIC's latest lawsuit filed in its role as receiver of a failed bank, the FDIC not only named as defendants nineteen former directors and officers of the failed bank, but also included as defendants seventeen of their spouses and the failed... Read More

Failed Bank Investors' Securities Suit Dismissed
Posted on 19 Jan 2011 by Kevin M. LaCroix

On January 14, 2011, in a ruling that could have implications for other failed bank investors' securities class action lawsuits, Northern District of Georgia Judge Charles A. Pannell, Jr . granted defendants' motions to dismiss the securities... Read More

FDIC Pursues Litigation Against Failed Banks - Slowly
Posted on 18 May 2011 by Kevin M. LaCroix

The FDIC's pursuit of litigation against directors and officers of banks that have failed as part of the current round of bank failures has been moving forward, albeit at a deliberate pace. The agency's litigation efforts advanced a couple of... Read More

Florida Federal Judge Says Bank Directors Not Liable For Ordinary Negligence In Failed Bank Lawsuit
Posted on 20 Aug 2012 by Kevin M. LaCroix

A federal court has ruled in the only FDIC failed bank lawsuit pending in Florida that directors cannot be liable for ordinary negligence under Florida law. On August 8, 2012, Middle District of Florida Judge Gregory Presnell granted the motion of the... Read More

Federal Judge Dismisses Securities Class Action Against U.S.-Listed Chinese Company
Posted on 14 Oct 2011 by Kevin M. LaCroix

In what is as far as I know the first outright dismissal motion grant in the wave of cases filed against U.S.-Listed Chinese companies that began last year, on October 6, 2011, Southern District of New York Judge Miriam Goldman Cedarbaum granted the defendants'... Read More

FDIC's Failed Bank Litigation Could Reach 86 Lawsuits, NERA Economic Consulting Projects
Posted on 6 Jul 2012 by Kevin M. LaCroix

In a May 31, 2012 study of the FDIC failed bank litigation that contains a number of interesting observations and projections, NERA Economic Consulting projects at the current filing rate, the FDIC's failed bank litigation ultimately could total 86... Read More

A Failed Bank, A Lawsuit, And Some Interesting Questions
Posted on 30 Jul 2010 by Kevin M. LaCroix

Though 268 banks have failed since January 1, 2008, there has been relatively little litigation related to the failed banks, as least so far. For example, the FDIC only recently filed its first action against former directors and officers of a failed... Read More

$208.5 Million Washington Mutual Securities Lawsuit Settlement Consists Of 3 Separate Agreements
Posted on 7 Jul 2011 by Kevin M. LaCroix

The parties to the consolidated class action litigation arising out of the collapse of Washington Mutual - the largest bank failure in U.S. history -- have agreed to settle the suit for a combined $208.5 million. The settlement, which has a number of... Read More

Former IndyMac CEO Agrees To $12 Million Settlement With FDIC
Posted on 17 Dec 2012 by Michael J. Lello

LOS ANGELES - (Mealey's) Former IndyMac FSB CEO Michael Perry on Dec. 14 agreed to a $12 million settlement to resolve the Federal Deposit Insurance Corp.'s $600 million suit over his alleged role in the bank's failure, according to a stipulation... Read More

FDIC Files First Lawsuit As Part of Current Wave Against Failed Bank Accountants
Posted on 9 Nov 2012 by Kevin M. LaCroix

On November 1, 2012, in what is the first lawsuit the FDIC has filed as part of the current bank failure wave against a failed bank's accountants, the FDIC, as receiver for the failed Colonial Bank, has filed an action in the Middle District of Alabama... Read More

FDIC: 'Close' To Settlement In Lawsuit Against WaMu Execs
Posted on 22 Jun 2011 by LexisNexis Litigation Resource Community Staff

WASHINGTON, D.C. - (AP) Federal bank regulators say they are close to settling their civil lawsuit against three former top executives of Washington Mutual accused of negligence in allowing risky mortgage lending at the biggest U.S. bank ever to fail... Read More