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.

Experience

  • 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

    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

    Telephone Consumer Protection Act (TCPA) allegations

    Defeated a class certification motion on behalf of a consumer finance company related to Telephone Consumer Protection Act (TCPA) allegations in the 7th Circuit. The court ruled that the class could not be ascertained, the class definition constituted an improper “fail-safe” class, and the plaintiff failed to establish the Rule 23 requirements of commonality, predominance, adequacy, typicality and superiority. The court also held that the plaintiff did not establish numerosity, an unusual element for a court to decide in ruling against a class plaintiff.

  • REPRESENTATIVE MATTER

    Successful defense of Fortune 200 financial institution in breach of contract MDL

    Representation of a Fortune 200 financial institution in a breach of contract multi-district litigation relating to an interest rate increase on more than 30 million of its credit card accounts. The plaintiffs alleged breach of contract, breach of the implied duty of good faith and fair dealing, unjust enrichment, violations of the Truth in Lending Act (TLA), and more. With cases filed across the country, the matter was consolidated to the Northern District of Georgia. We prevailed on summary judgment on all claims, and the 11th Circuit affirmed on appeal.

Team Leaders

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