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Banking
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August 06, 2025
Honey Dew Says M&A Adviser Missed Fake $25M Letter
Massachusetts-based regional coffee and donut chain Honey Dew says the investment banking firm it hired to find a buyer in 2018 would have learned that a $25 million "proof of funds" letter purporting to be from UBS was a forgery had it performed the expected due diligence.
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August 05, 2025
Voyager Digital's Former Bank Escapes Fraud Suit, For NowÂ
Voyager Digital's former bank, Metropolitan Commercial Bank, has won dismissal of a 53-count suit alleging it was complicit in bad behavior by the now-defunct crypto lender and should be on the hook for repaying platform users, with the court ruling that the complaint as-is does not plausibly plead fraud or unjust enrichment.
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August 05, 2025
Fired NCUA Officials Urge DC Circ. To Return Them To Board
Two top credit union regulators fired by President Donald Trump are asking the D.C. Circuit to let them go back to work while it reviews a lower-court decision reinstating them, arguing their service is needed to prevent a painful impending snapback in interest-rate limits for federal credit unions.
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August 05, 2025
SVB Directed To Object To Ch. 11 Claims In Standing Fight
The former parent company of Silicon Valley Bank and liquidators tasked with winding up its Cayman Islands branch locked horns on Tuesday over standing in a $294 million lawsuit, prompting a New York bankruptcy judge to request that SVB Financial object to claims as having been filed too late.
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August 05, 2025
SEC Fines Platform Founder $10M Over Crypto-Backed Scam
The owner of a shuttered lending platform has agreed to pay over $10 million to end a U.S. Securities and Exchange Commission case accusing him of defrauding customers by using their money to buy millions of dollars' worth of TerraUSD before the stablecoin collapsed.
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August 05, 2025
States Push DOJ To Crack Down On Illegal Offshore Gambling
Attorneys general from several states have written a letter asking the U.S. Department of Justice to target the "rampant spread" of illicit offshore online sports betting and gambling operations, which they say are harming United States citizens and depriving states of tax revenue.
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August 05, 2025
Ex-Wells Fargo Adviser Fights $400K Award In 1-Day Arbitration
A former Wells Fargo financial adviser asked a North Carolina federal court Monday to vacate a nearly $400,000 arbitration award entered against him, alleging the one-day merits hearing was rushed and ignored key evidence.
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August 04, 2025
Citibank Ignored Red Flags About $45M Wire Fraud, Suit Says
Citibank failed to stop scammers from absconding with $45 million from a real estate property transaction when it processed payment orders even after it detected name mismatches between the identified transaction beneficiary and the account holder, according to a lawsuit filed Friday in California federal court.Â
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August 04, 2025
5th Circ. Says Appeal Over Mexican Bank Discovery Looks Moot
The Fifth Circuit pushed a Mexican businessman to explain how his appeal was not moot after a special master was appointed to review documents relating to an alleged fraud against Mexican financial institutions, saying Monday the businessman has seemingly already gotten the relief he sought.
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August 04, 2025
Axos Wins $40M In Trade Secrets Case Against Calif. Rival
A California federal court has ordered Nano Banc and several former employees and executives to pay $40 million to rival Axos Bank after they were found liable for trade secret misappropriation and other claims.
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August 04, 2025
Rocket Cos. Investor Drops Mich. Derivative Suit
An investor in the parent company of online mortgage lender Rocket Mortgage has dropped derivative allegations that the company's brass concealed a loan demand downturn a week after a proposed shareholder class action making similar claims was voluntarily tossed.
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August 04, 2025
4th Circ. Backs SBA In Denying COVID Loan Relief To Va. Biz
A global consultancy and risk management company lost its bid Monday to revive its loan repayment suit against the U.S. Small Business Administration, as the Fourth Circuit found that the SBA fairly concluded the $5 million loan was ineligible for COVID-19 debt relief.
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August 04, 2025
NY Atty Found Guilty Of Duping Lender Who Backed Lien Biz
A Manhattan federal jury on Monday convicted a former compliance lawyer of pilfering from a $20 million line of credit extended to his tax-lien business by a subsidiary of Emigrant Bank.
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August 04, 2025
SVB Says Caymanian Liquidators Can't Claw Back $294M
The former parent of the defunct Silicon Valley Bank Monday asked a New York bankruptcy judge to stop the liquidators of its Cayman Islands branch from clawing back $294 million in dividend payments, saying there is no precedent for giving them standing to sue.
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August 04, 2025
Catching Up With Delaware's Chancery Court
Last week at the Delaware Court of Chancery, insurance brokerage and risk management giant Marsh & McLennan Cos. sought injunctive relief in a new suit accusing U.S. affiliates of London-based Howden Holdings Ltd. of a poaching scheme that involved over 100 M&M employees resigning on July 21.Â
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August 04, 2025
FinCEN Urges Industry To Stay 'Vigilant' On Crypto ATM Fraud
The U.S. Department of the Treasury's Financial Crimes Enforcement Network on Monday cautioned about rising fraud involving crypto ATMs, saying criminals are increasingly using the kiosks to launder money and scam vulnerable consumers, especially seniors.
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August 04, 2025
3rd Circ. Denies Tribal Lender Immunity In Payday Loan Suit
The Third Circuit ruled Monday that tribal immunity doesn't shield GreatPlains Finance LLC from class claims over payday loan interest rates, reasoning that a judgment wouldn't affect the tribe's revenue.
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August 04, 2025
Cold Storage Co. Duped Investors Before 2024 IPO, Suit Says
A pension fund has sued Lineage Inc., a cold-storage real estate investment trust, and several of its executives in Michigan federal court over the company's initial public offering, the largest of 2024, alleging the REIT and its top brass misled investors about softening demand and unsustainable pricing.
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August 04, 2025
Proskauer Welcomes Structured Credit Pro From Dechert
Proskauer Rose LLP announced another addition to its structured credit team in New York on Monday, welcoming a former Dechert LLP attorney with a strong background in structured finance insurance solutions.
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August 04, 2025
UBS To Pay DOJ $300M To Settle Inherited Credit Suisse Case
Swiss bank UBS said Monday it has agreed to pay the U.S. Department of Justice $300 million to settle outstanding obligations inherited from the mortgage-backed securities business of Credit Suisse, the lender it acquired in 2023.
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August 01, 2025
3rd Circ. Asked To Revive Amazon Biometric Data Suit
A federal judge erred in tossing class claims accusing Amazon of collecting consumers' voice data without their consent, including by finding that a third-party software company was a "financial institution," the named plaintiffs told the Third Circuit
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August 01, 2025
Oppenheimer Says OFAC Is Looking Into Its AML Policies
Wall Street brokerage and investment bank Oppenheimer Holdings Inc. said Friday that the U.S. Department of the Treasury's sanctions arm is investigating its anti-money laundering compliance program.
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August 01, 2025
9th Circ. Sees 'Everest-Like' Preemption For Credit Union Fees
A Ninth Circuit panel on Friday rejected a consumer's bid to revive his California class action claims over bounced-check fees at Navy Federal Credit Union, ruling that federal credit unions are exempt from state laws that regulate account fees.
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August 01, 2025
GOP Reps Eye Reforms To Landmark Bank Data Privacy Law
Republican lawmakers have kicked off a review that could lay the groundwork for new financial data privacy legislation, soliciting public input on whether and how to overhaul a law that governs financial institutions' handling of consumer financial records.
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August 01, 2025
2nd Circ. Affirms Class Cert. In VRDO Suit Against Banks
The Second Circuit on Friday upheld a lower court order granting class certification to a group of American cities and others that are accusing eight large banks of inflating interest rates on debt securities known as variable rate demand obligations, saying the district court applied the correct legal standard in granting certification.
Expert Analysis
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Series
Law School's Missed Lessons: Teaching Yourself Legal Tech
New graduates often enter practice unfamiliar with even basic professional software, but budding lawyers can use on-the-job opportunities to both catch up on technological skills and explore the advanced legal and artificial intelligence tools that will open doors, says Alyssa Sones at Sheppard Mullin.
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In 2nd Term, Trump Has New Iran Sanctions Enforcement Tool
As tensions between the U.S. and Iran escalate, the Trump administration may use a whistleblower program enacted in 2022 to target violations that were previously more difficult to detect, thus expanding enforcement of economic sanctions, say attorneys at MoloLamken and Zuckerman Law.
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How AI May Reshape The Future Of Adjudication
As discussed at a recent panel at Texas A&M, artificial intelligence will not erase the human element of adjudication in the next 10 to 20 years, but it will drive efficiencies that spur private arbiters to experiment, lead public courts to evolve and force attorneys to adapt, says Christopher Seck at Squire Patton.
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What Money Transmitters Need To Know About New Colo. Law
Colorado's new Money Transmission Modernization Act updates standards for the licensing, supervision and regulation of money transmitters while codifying an agent-to-payee exemption, and represents another step toward standardizing these rules across state governments, say Sarah Auchterlonie and Joel Herberman at Brownstein Hyatt.
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When Legal Advocacy Crosses The Line Into Incivility
As judges issue sanctions for courtroom incivility, and state bars advance formal discipline rules, trial lawyers must understand that the difference between zealous advocacy and unprofessionalism is not just a matter of tone; it's a marker of skill, credibility and potentially disciplinary exposure, says Nate Sabri at Perkins Coie.
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Two Bills Promise A Crypto Revamp, But Not A Done Deal Yet
Recent efforts in Congress toward an updated regulatory framework for digital assets have led to two bills — the GENIUS Act and the CLARITY Act — that represent the most consequential legislative developments yet in the push for coherent, pro-innovation, reliable regulation for the industry, but both face multiple hurdles, says Mike Katz at Manatt.
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2 NY Rulings May Stem Foreign Co. Derivative Suits
In recent decades, shareholders have challenged the internal affairs doctrine by bringing a series of derivative actions in New York state court on behalf of foreign corporations, but the New York Court of Appeals' recent rulings in Ezrasons v. Rudd and Haussmann v. Baumann should slow that trend, say attorneys at Cleary.
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Despite Rule Delay, FTC Scrutiny Looms For Subscriptions
Even though the Federal Trade Commission has delayed its click-to-cancel rule that introduces strict protocols for auto-renewing subscriptions, businesses should expect active enforcement of the new requirements after July, and look to the FTC's recent lawsuits against Uber and Cleo AI as warnings, say attorneys at Holland & Knight.
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AGs Take Up Consumer Protection Mantle Amid ÃÛÌÒÊÓÆµ Cuts
State attorneys general are stepping up to fill the enforcement gap as the Trump administration restructures the Consumer Financial Protection Bureau, creating a new regulatory dynamic that companies must closely monitor as oversight shifts toward states, say attorneys at Cozen O’Connor.
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Va.'s Altered Surcharge Law Poses Constitutional Questions
Virginia's recently amended consumer protection law requiring sellers to display the total price rather than expressly prohibiting surcharges follows New York's recent revision of its antisurcharge statute and may raise similar First Amendment questions, says attorneys at Stinson.
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Series
Volunteering At Schools Makes Me A Better Lawyer
Speaking to elementary school students about the importance of college and other opportunities after high school — especially students who may not see those paths reflected in their daily lives — not only taught me the importance of giving back, but also helped to sharpen several skills essential to a successful legal practice, says Guillermo Escobedo at Constangy.
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Fed's Crypto Guidance Yank Could Drive Innovation
The Federal Reserve Board's recent withdrawal of guidance letters brings regulatory consistency and broadens banks' ability to innovate in the crypto-asset space, but key distinctions remain between the Fed's policy on crypto liquidity and that of the other banking regulators, says Dan Hartman at Nutter.
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Attacks On Judicial Independence Tend To Manifest In 3 Ways
Attacks on judicial independence now run the gamut from gross (bald-faced interference) to systemic (structural changes) to insidious (efforts to undermine public trust), so lawyers, judges and the public must recognize the fateful moment in which we live and defend the rule of law every day, says Jim Moliterno at Washington and Lee University.
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OCC's Digital Embrace Delivers Risk, Opportunity For Banks
As the Office of the Comptroller of the Currency continues to release and seek more information on banks' participation in the crypto-asset arena, institutions may see greater opportunity to pursue digital asset and custody services, but must simultaneously educate themselves on transformations occurring throughout the industry, says Kirstin Kanski at Spencer Fane.
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Remediation Still Reigns Despite DOJ's White Collar Shake-Up
Though the U.S. Department of Justice’s recently announced corporate enforcement policy changes adopt a softer tone acknowledging the risks of overregulation, the DOJ has not shifted its compliance and remediation expectations, which remain key to more favorable resolutions, say Jonny Frank, Michele Edwards and Chris Hoyle at StoneTurn.