News & Analysis as of

RICO Financial Services Industry

Ballard Spahr LLP

Ninth Circuit: Arbitration clause prevails in “true lender” challenge against OppFi

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In a recent unpublished memorandum opinion in a putative class action, Carpenter et al. v. Opportunity Financial, LLC, the U.S. Court of Appeals for the Ninth Circuit upheld an arbitration clause in an agreement governing...more

Troutman Pepper

Bank and Loan Servicer Move to Dismiss Purported Class Action Asserting Violations of Georgia Usury Law and RICO

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Recently, Lead Bank and its loan servicer Hyphen, LLC, an online lending platform operating Helix Financial, filed a motion to dismiss a purported class action alleging violations of the Georgia Installment Loan Act (GILA)...more

Ballard Spahr LLP

OppFi Hat Trick: Third Federal Court Upholds Arbitration Clause

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Earlier this month, in Fama v. Opportunity Financial LLC, a Magistrate Judge of the federal district court for the Western District of Washington held that the arbitration provision in OppFi’s installment loan agreement is...more

Ballard Spahr LLP

“True lender” class actions against OppFi filed in multiple states

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In January 2023, a federal district court in Texas dismissed Michael v. Opportunity Financial, LLC, a putative class action filed in June 2022 claiming that fintech Opportunity Financial, LLC (OppFi), not its out-of-state,...more

K&L Gates LLP

Developments in Revenue Based Financing

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Introduction - On 22 September 2022, we published Growing Trend of Revenue Based Financing and its Legal Implications, which described revenue-based financing (RBF) and its growing popularity for use as an alternative...more

Sheppard Mullin Richter & Hampton LLP

FinTech Prevails in Texas “True Lender” Challenge

On January 11, 2023, a Texas federal court dismissed a class action lawsuit against a leading financial technology company alleging it violated Texas usury laws by charging interest on loans it made through a partnership with...more

Orrick, Herrington & Sutcliffe LLP

4th Circuit affirms certification of class action in tribal lending case

On January 24, the U.S. Court of Appeals for the Fourth Circuit concluded that a district court did not abuse its discretion when certifying a class action. The lawsuit alleges an individual who orchestrated an online payday...more

Orrick, Herrington & Sutcliffe LLP

2nd Circuit affirms dismissal of FDCPA, FCRA, RICO action

On January 19, the U.S. Court of Appeals for the Second Circuit affirmed the dismissal of a debt collection action related to alleged violations of the FCRA, FDCPA, and the Racketeer and Influenced and Corrupt Organizations...more

Rosenberg Martin Greenberg LLP

United States Court of Appeals for the Fourth Circuit Refuses to Enforce Arbitration and Choice of Law Provisions Because of...

Most of us have heard the expression “Pigs get fat, hogs get slaughtered.”  The United States Court of Appeals for the Fourth Circuit did not slaughter the officials of the lenders in its November 16, 2021 opinion in Hengle...more

Proskauer - Minding Your Business

Ninth Circuit Splits From the Second, Third and Fourth Circuits in “Brain Twister” Arbitration Case

Arbitration provisions are common features of commercial agreements.  Arbitration is often touted as a cost-effective alternative to litigation that provides contract parties the freedom to decide everything from what law the...more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Week Ending March 20, 2020

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Real Property Update - Foreclosure / Surplus: Purchaser of real property per an agreement for deed was not the record owner and could not claim foreclosure sale surplus – Corey v. Neuffer, No. 2D19-1083 (Fla. 2d DCA Mar....more

Hinshaw & Culbertson LLP

Seventh Circuit Allows Law Firm to Dodge RICO Suit Based on Alleged Fraudulent Tax Advice

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Menzies v. Seyfarth Shaw LLP, No. 18-3232, 2019 U.S. App. LEXIS 33701 (7th Cir. Nov. 12, 2019) - Brief Summary - In a 2-1 decision, the Seventh Circuit held that the district court properly dismissed an executive's RICO...more

The Volkov Law Group

House of Representatives Passes Bill Aimed at Marijuana Industry Financial Reforms

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A new bill that would make it easier for financial institutions to provide services to “marijuana-related businesses” has passed the U.S. House of Representatives 321-103 with strong bipartisan support....more

Carlton Fields

Defendants Fend Off Challenge to FIA’s Proprietary Index

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The End or the Beginning for Suits Over Disappointed Index Interest Expectations? Security Benefit Life Insurance Co. and Guggenheim Partners recently secured an important victory in a class action challenging a fixed...more

Ballard Spahr LLP

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

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A group of small businesses and their individual owners have filed a putative class action lawsuit in a New York federal district court against online lender Kabbage, Inc. that alleges Kabbage engaged in a “rent-a-charter”...more

Ballard Spahr LLP

The Mortgage Controls: Mortgagors' Dispute Regarding Alleged "Excessive" and "Unreasonable" Property Inspection Fees Fails to...

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In a recent decision, a federal court in the Southern District of New York (SDNY) dismissed a putative class action complaint alleging, among other things, that a mortgage servicer violated the Fair Debt Collection Practices...more

Hogan Lovells

RICO Complaint Settlement Highlights TCPA Abuse by Plaintiffs’ Law Firms; Serial Plaintiffs and Cy Pres Awards Continue to...

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As the number of frivolous Telephone Consumer Protection Act (“TCPA”) class actions continues to grow unabated, the potential rewards have even led to alleged criminal activity by plaintiff firms seeking to game the system.  ...more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Weeks Ending May 18 & 25, 2018

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REAL PROPERTY UPDATE - Foreclosure/Standing: bank's allegation in complaint that it acquired loan and possessed both legal and beneficial interest in note and mortgage prior to filing complaint, coupled with the subsequent...more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Weeks Ending April 6 & 13, 2018

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REAL PROPERTY UPDATE - Lis Pendens: lawsuit to foreclose mortgage on real property is an action "founded on a duly recorded instrument" - National American Home, LLC v Deutsche Bank Nat. Trust Co., Case No. 4D17-2614 (Fla....more

Ballard Spahr LLP

Federal jury convicts operator of payday lenders sued by CFPB and FTC

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Richard Moseley Sr., the operator of a group of interrelated payday lenders, was convicted by a federal jury on all criminal counts in an indictment filed by the Department of Justice, including violating the Racketeer...more

Carlton Fields

Eighth Circuit Affirms Dismissal of RICO Claim in So-Called Shadow Insurance Suit

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In Ludwick v. Harbinger Group, the U.S. Court of Appeals for the Eighth Circuit affirmed the dismissal under the McCarran-Ferguson Act of a federal RICO claim against Fidelity & Guaranty (and its owner and several affiliates)...more

Patterson Belknap Webb & Tyler LLP

When is a Working Capital Agreement a Loan? It Depends on Your Claim

Suppose you’ve entered into a financial arrangement that resembles a lending agreement, but it is not formally designated as such, and you think you’re paying too much....more

Goodwin

Eleventh Circuit Affirms Dismissal of RICO Claim in Hidden Fee Case

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On September 2, 2016, the Eleventh Circuit affirmed dismissal of a civil RICO claim in Ray v. Spirit Airlines, Inc., a case that challenged Spirit Airlines’ reporting of fees to customers. The Eleventh Circuit’s affirmance...more

Alston & Bird

Class Action Roundup: Winter 2016

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Where the (Class) Action Is - This issue of Roundup wraps up 2015 with another slate of interesting cases spanning industries and subject matter. The running theme of ascertainability is now stretching into antitrust...more

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