dcsimg Financial Services Litigation

Financial Services Litigation

The financial services industry has long been one of the most complex, highly regulated and carefully scrutinized business segments in the world. The collapse of the credit markets and the mortgage foreclosure crisis have created unprecedented challenges for banks and other financial services institutions, not the least of which has been a tidal wave of lawsuits and government investigations attacking fundamental business practices. In addition, banks have been forced to both anticipate and react swiftly to a wide array of new regulations.

McGuireWoods’ long history of representation of financial institutions has prepared the firm well to stand with its clients in meeting these multi-faceted and unprecedented challenges. Because we understand the business, our Financial Services Litigation Team is called upon by some of the world’s most prominent financial institutions to meet these challenges.

A centerpiece of our practice is the Consumer Financial Services Litigation Group. They have developed deep experience in the “alphabet-soup” of regulatory regimens that have generated waves of litigation in recent years: TILA, RESPA, FDCP, FCRA, and more. We are currently defending dozens of individual and class action claims across the country that attack mortgage servicing and foreclosure practices. We have also represented credit card issuers and servicers in individual and class actions alleging that their marketing programs and disclosure practices violate these federal and state consumer protection laws.

A creative claim by a lone borrower can become a class action, or result in a regulatory investigation, a securities claim, or a shareholder derivative action. The institution may have to force a recalcitrant insurer to step up to join in the defense. Our Securities, Class Actions, Government Investigations & White Collar Criminal, Shareholder/Directors & Officers Litigation, Accountants Defense, and Insurance Teams are fully integrated with our Financial Services Litigation Practice, providing the full range of knowledge that our clients need to meet each new challenge.

In addition, our Financial Services Litigation Practice encompasses the broad array of claims that our financial institution clients face, simply as a result of their day-to-day business activities:

  • Loan workout, receivership and lender liability actions, often involving our Restructuring/Insolvency Team.
  • Disputes under Articles 3, 4 and 4A of the Uniform Commercial Code, including fraudulent endorsements and fictitious payees.
  • Failed asset securitizations and defaulted syndicated loans, representing both lead lenders and participants.
  • Intercreditor disputes, including issues relating to the perfection and priority of security interests and the interpretation of lien or payment subordination agreements.
  • Responding to claims of breach of fiduciary duty by bank trust departments resulting from alleged poor investment performance.
  • Defending claims against and investigations of Broker/Dealers by the SEC, FINRA, and state regulators.
  • Responding to breach of privacy claims by bank customers.
  • Conversion claims relating to consumer and commercial deposit accounts, and application of National Automated Clearinghouse Association rules and regulations.
  • Defending individual and class actions challenging employment practices of bank clients, utilizing the knowledge and experience of our Labor and Employment Group.
  • Commercial disputes with vendors, lessors and suppliers, business torts, and intellectual property protection matters.

Finally, we call on our Discovery Counsel Services Team to effectively manage the collection and management of the massive quantities of data that are generated by financial institutions in the ordinary course of business. This team has a national reputation for efficient and comprehensive management of bank data. They have been integral to the defense of many matters.

CONTACTS

Bradley R. Kutrow Partner T: +1 704 343 2049
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RESULTS DEPEND ON A VARIETY OF FACTORS UNIQUE TO EACH CASE. PRIOR RESULTS DO NOT GUARANTEE OR PREDICT A SIMILAR OUTCOME.

Representative Matter

Fortune 100 financial institution

Representation of a Fortune 100 financial institution including more than a dozen class actions across the country arising from the mortgage foreclosure crisis. The firm also represents the institution in related shareholder litigation and state and federal investigations.
Representative Matter

Fortune 100 financial institution

Represented a Fortune 100 financial institution in a series of lawsuits and negotiations to recover monies owed under title insurance policies on claims involving more than 7,000 individual home equity mortgage loans and lines of credit, resulting in total recoveries to the client in excess of $140 million to date.
Representative Matter

Diversified financial services company and regional bank

Represented a diversified financial services company and regional bank in a lender liability lot loan case that involved more than 70 plaintiffs and significant discovery over a period of two years. Final rulings dismissed all claims against the bank and several of its loan officers, and resulted in significant monetary judgments against bank borrowers.
Representative Matter

Regional bank

Represented a regional bank defending a lender liability suit and related challenge by a developer  to the bank's foreclosure action arising out of a $20 million loan. Obtained  foreclosure, recovery on the guaranty in a bench trial, dismissal of all nine claims against the bank and a significant judgment for the bank on the loan documents .
Representative Matter

Fortune 100 financial institution

Represented a Fortune 100 bank in a $40 million fraud action against the bank’s outside security vendor, which received kickbacks from a bank officer in exchange for submission of inflated invoices.
Representative Matter

One of Chicago's largest banks

Represented one of Chicago's largest banks in a lawsuit brought by a commercial borrower alleging the bank caused more than $30 million in damages and the downfall of its company when the bank improperly declared an event of default under the loan documents, failed to approve an infusion of capital through mezzanine financing, tortiously interfered with prospective business relationships and wrongfully dishonored checks.
Representative Matter

Fortune 500 bank

Represented two Fortune 500 banks and MERS in the borrower’s appeal of several claims related to securitization of the loan and violations of the Fair Debt Collection Practices Act. The Fourth Circuit affirmed dismissal of the Complaint.
Representative Matter

Fortune 100 financial institution

Represented a Fortune 100 bank in a lot loan fraud case in the U.S. District Court for the District of Hawaii. The plaintiffs alleged TILA and RESPA violations and asserted claims for fraud and unfair trade practices against the bank, arising from their investment in a failed residential development in Texas.
Representative Matter

Fortune 200 bank

Representation of a Fortune 200 bank in connection with investigations by the United States Department of Justice and Comptroller of the Currency related to alleged violations of the Servicemembers Civil Relief Act.  Negotiated Consent Orders with both agencies and continue to assist the bank in fulfilling the associated remediation requirements under the Consent Orders.
Representative Matter

Fortune 100 financial institution

Representation of a Fortune 100 financial institution in connection with urgent and significant bankruptcy and foreclosure litigation across the country involving our client's role as servicer for consumer mortgage loans. We are one of only a handful of large law firms engaged as national counsel.
Representative Matter

Fortune 100 financial institution

Representation of a Fortune 100 financial institution in connection with urgent and significant bankruptcy and foreclosure litigation across the country involving the institution's role as servicer for consumer mortgage loans.  
Representative Matter

Fortune 200 bank

Representation of a Fortune 200 bank in the defense of a class action alleging violation of state consumer finance statute and breach of contract based on same violation. Plaintiff alleges that defendant violated Maryland’s Credit Grantor Closed End Credit provisions (“CLEC”) by failing to provide borrowers with the appropriate post-repossession sale notice.
Representative Matter

Fortune 100 financial institution

Representation of Fortune 100 financial institution in a putative class action lawsuit purporting to bring claims for violation of government consent order on foreclosure process issues. Following oral argument, the judge granted a demurrer we filed on behalf of the institution, and dismissed both the third party complaint and a related counterclaim in their entirety, with prejudice.
Representative Matter

Servicer, investor and nominee

Representation of a servicer, investor, and nominee in defending the plaintiff’s challenge of the foreclosure, and specifically whether there was authority to appoint the foreclosing substitute trustee. The Fairfax County, Va. Circuit Court found in our clients’ favor after an evidentiary hearing on a plea in bar, and the plaintiff appealed. The Virginia Supreme Court denied the plaintiff’s petition for appeal after oral argument, and also denied the plaintiff’s petition for reconsideration.
Representative Matter

State finance authority

Representation of a state finance authority in a matter involving a lender’s attempt to release a borrower and its related corporate entity, which had filed for bankruptcy, from a guarantee for a loan in which the authority had participated. This matter, which concerned the relative rights and powers between a lender and its participant, was settled favorably and our client received over 97 percent of the repurchase calculation.
Representative Matter

Fortune 100 financial institution

Representation of a Fortune 100 financial institution in a putative class action alleging that the language in the notices of acceleration that client used in Florida failed to comply with the requirements for initiating foreclosures set forth in Florida mortgage statutes. Plaintiff sought to apply this same theory to obtain relief on a class-wide basis under theories of breach of contract and fraud on the court, and for violations of the Florida Consumer Collection Practices Act and Florida Deceptive and Unfair Trade Practices Act. Firm persuaded the court to dismiss all of Plaintiff’s claims with leave to amend on three separate occasions.
Representative Matter

Fortune 100 financial institution

Representation of a Fortune 100 financial institution when a group of more than 40 plaintiffs sued the entities that originated their mortgages, seeking rescission of those mortgages. Plaintiffs advanced a novel claim challenging the sale or transfer of servicing rights premised on the argument that when they entered into their mortgages, they did not know that the servicing rights to those mortgages could be sold to other entities. Defendants pointed to the numerous documents that the plaintiffs signed during the mortgage process, which clearly indicated the servicing rights to their mortgages could be sold or transferred. The district court dismissed the claims with prejudice and without leave to amend. The plaintiffs appealed arguing that they plausibly stated a claim for rescission. The Tenth Circuit agreed and found that the plaintiffs had failed to state a plausible claim.
Representative Matter

A regional agricultural supply cooperative

Representation of a regional agricultural supply cooperative and its individual Board of Directors in a breach of fiduciary duty, ultra vires action and shareholder oppression case after the client designated that plaintiff, a member company, was a “Member Not in Good Standing” under its Base Capital Plan, thus withholding over $3.5 million in payments under patronage stock. The member company also complains that they are being refused the right to nominate candidates for the Board. The case raises interesting issues regarding Board discretion and shareholder rights, among others. We have filed a motion to dismiss and are awaiting a hearing date.
Representative Matter

Fortune 200 bank

Representation of a Fortune 200 financial institution in a putative class action regarding whether it violated provisions of New York’s Earned Income Protection Act.
Representative Matter

Fortune 100 financial institution

Representation of a Fortune 100 financial institution against potential claims stemming from a deposit account relationship with an individual accused of embezzeling over $5 million made by an individual from her employer spanning over a decade.
Results 1-20 of 40
Results 1-25 of 139
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Kristina M Allen Kristina M. Allen
Associate
1345 Avenue of the Americas
7th Floor
New York, NY 10105-0106

T: +1 212 548 2164
F: +1 212 715 6262
vCard
Stephen David Allred Stephen David Allred
Counsel
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2214
F: +1 704 444 8702
vCard
John Huske Anderson Jr. John Huske Anderson Jr.
Partner
300 North Third Street
Suite 320
Wilmington, NC 28401-4099

T: +1 910 254 3828
F: +1 910 254 3900
vCard
Mark E Anderson Mark E. Anderson
Partner
434 Fayetteville Street
Suite 2600
Raleigh, NC 27601

1345 Avenue of the Americas
7th Floor
New York, NY 10105-0106

T: +1 919 755 6678
F: +1 919 755 6581
vCard
Jennifer Marie Arno Jennifer Marie Arno
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2391
F: +1 704 444 8769
vCard
Helen Arnold Helen D. Arnold
Associate
77 West Wacker Drive
Suite 4100
Chicago, IL 60601-1818

T: +1 312 849 8286
F: +1 312 698 4595
vCard
Andrew Atkins Andrew D. Atkins
Associate
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2324
F: +1 704 444 8765
vCard
R. R. Locke Beatty R. Locke Beatty
Associate
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2244
F: +1 704 353 6160
vCard
Marshall Beil Marshall Beil
Partner
1345 Avenue of the Americas
7th Floor
New York, NY 10105-0106

T: +1 212 548 7004
F: +1 212 715 2319
vCard
Kenneth D Bell Kenneth D. Bell
Partner
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 373 4620
F: +1 704 373 8836
vCard
Thomas M Beshere Thomas M. Beshere
Counsel
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 1004
F: +1 804 698 2193
vCard
Eric Bilik R. Eric Bilik
Partner
Bank of America Tower
50 North Laura Street
Suite 3300
Jacksonville, FL 32202-3661

T: +1 904 798 2685
F: +1 904 360 6304
vCard
Daniel F Blanks Daniel F. Blanks
Partner
Bank of America Tower
50 North Laura Street
Suite 3300
Jacksonville, FL 32202-3661

T: +1 904 798 3235
F: +1 904 360 6309
vCard
Bradley Bodiford Bradley G. Bodiford
Attorney
Bank of America Tower
50 North Laura Street
Suite 3300
Jacksonville, FL 32202-3661

T: +1 904 798 3237
F: +1 904 360 6306
vCard
J. William Boland J. William Boland
Partner
One James Center
901 East Cary Street
Richmond, VA 23219-4030

T: +1 804 775 4374
F: +1 804 698 2015
vCard
Michael Bolos Michael F. Bolos
Associate
77 West Wacker Drive
Suite 4100
Chicago, IL 60601-1818

T: +1 312 750 8883
F: +1 312 920 6156
vCard
Andrew Bowman Andrew B. Bowman
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2206
F: +1 704 444 8745
vCard
Heather Britton Heather A. Britton
Attorney
1750 Tysons Boulevard
Suite 1800
Tysons Corner, VA 22102-4215

T: +1 703 712 5015
F: +1 703 712 5236
vCard
Jeff Brown Jeffrey L. Brown
Associate
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040

T: +1 202 857 2447
F: +1 202 828 3311
vCard
Joshua D Burns Joshua D. Burns
Associate
77 West Wacker Drive
Suite 4100
Chicago, IL 60601-1818

T: +1 312 641 2082
F: +1 312 698 4511
vCard
Pamela J Butler Pamela J. Butler
Counsel
300 North Third Street
Suite 320
Wilmington, NC 28401-4099

T: +1 910 254 3829
F: +1 910 254 3830
vCard
Matthew M Calabria Matthew M. Calabria
Associate
434 Fayetteville Street
Suite 2600
Raleigh, NC 27601

T: +1 919 755 6692
F: +1 919 755 6612
vCard
Natalie C Carter Natalie C. Carter
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 343 2270
F: +1 704 295 0768
vCard
Paul J Catanese Paul J. Catanese
Associate
77 West Wacker Drive
Suite 4100
Chicago, IL 60601-1818

T: +1 312 750 3536
F: +1 312 920 3697
vCard
Lesley Cedrone Lesley M. Cedrone
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146

T: +1 704 373 8980
F: +1 704 343 2300
vCard
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Key Risk Management and Insurance Issues for Corporate Counsel

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4th Circuit Rules Executed but Unrecorded Security Interest Has Priority Over IRS Tax Lien

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