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 Email
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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

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

Settled an alleged $225 million fraud class action in duplicitous lawyer's plans to defraud investor

Representation of a financial institution in a class action lawsuit filed by foreign investors related to an alleged $225 million fraud scheme orchestrated by an attorney who allegedly deposited the investment funds into various attorney trust accounts with bank and proceeded to use those funds to pay unrelated premium obligations or to pay out money to other investors and participants in the scheme. Plaintiffs, purporting to represent all 1,000+ investors, alleged that the bank failed to properly investigate the nature of the trust accounts, and failed to properly monitor and investigate the money movement between the accounts. After 18 months of litigation, the case settled on terms favorable for the client.
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

Novel consent arguments result in favorable class action settlement brought against auto finance company under TCPA

Favorably settled a putative class action brought under the Telephone Consumer Protection Act alleging that a leading auto finance company failed to obtain prior express consent before making automated calls to the cell phones of the references listed by the borrowers in their loan applications, raising novel issues regarding “consent by intermediary,” i.e., whether the references authorized the borrowers to provide their cell phone numbers.
Representative Matter

Alleged violations of the Securities Act of 1933 dismissed against distributor of REIT shares

Representation of five Real Estate Investment Trusts, several subsidiary companies, and certain directors and officers in consolidated securities class action in federal court in New York. The consolidated complaint alleged violations of Sections 11, 12 and 15 of the Securities Act of 1933, state securities laws, breach of fiduciary duty, unjust enrichment and negligence. Defendants’ Motions to Dismiss were granted and the case was dismissed with prejudice. We prevailed on the appeal to the 4th Circuit.  
Representative Matter

U.S. regional federal banks and national banking associations (N.A.’s)

Successful dismissal of scores of foreclosure challenge lawsuits arising from the U.S. foreclosure crisis in both federal and state courts. Our representations in these suits helped shape the legal landscape for real estate foreclosures in the Commonwealth of Virginia.
Representative Matter

Servicer, investor, and nominee

Representation of a servicer, investor, and nominee in defending the plaintiff’s challenge of a 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 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

Fortune 100 financial institution

Secured dismissal of a Fortune 100 financial institution from a highly complex, high stakes litigation with national consequences for all national banks and their authority to exercise fiduciary powers.
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. After granting the bank summary judgment regarding breach of approximately $6 million in loans, the court entered judgment in favor of the bank on the borrower’s remaining claims after a bench trial that extended over the course of a year.
Representative Matter

Individual

Representation of a former bank official in a band fraud investigation. After a 10-week jury trial, our client was acquitted on all nine charges, while the other four co-defendants were convicted of most charges they faced.
Representative Matter

Fortune 100 financial institution

Borrowers sought to vacate a final judgment of foreclosure that favored our client, a Fortune 100 financial institution, on the grounds of excusable neglect. The case went upon appeal to the Florida Third District Court of Appeals. We received a per curium affirmance in favor of our client following oral argument.
Representative Matter

Favorable settlement of TCPA claims and dismissal of email claims against software company

Favorably resolved a putative nationwide class action against a software company alleging that the company’s telemarketing and email marketing practices violated the TCPA and the Illinois E-Mail Act. The court granted a motion to dismiss the email claims based on federal preemption and the parties reached a class-wide settlement on the TCPA claims well below the client’s potential exposure.
Representative Matter

Custodial trustee company

Representation of a custodial trustee company in a matter brought by over 100 plaintiffs against more than a dozen defendants relating to an alleged $52 million Ponzi scheme where the persons engaged in the alleged fraud were criminally convicted.
Representative Matter

Fortune 100 financial institution

On behalf of a Fortune 100 financial institution we secured in the New York Appellate Division, 2d Dept., in May 2012 the reversal of a Brooklyn trial court's sua sponte dismissal with prejudice of a residential foreclosure action brought by the bank.
Representative Matter

U.S. regional federal savings bank

Representation of a U.S. regional federal savings bank where plaintiffs were appealing the dismissal of a foreclosure challenge complaint on demurrer. Successfully secured dismissal of Complaint in Circuit Court challenging mortgage practices of our client, and successfully opposed Petition for Appeal to Virginia Supreme Court.
Representative Matter

Fortune 100 financial institution

Representation of a Fortune 100 financial institution in a series of lawsuits arising out of the collapse of an Italian food and dairy conglomerate. The claimed losses against the bank exceeded $14 billion. The cases involved worldwide discovery and coordinated efforts with other U.S. and European counsel for the client, which faced other related civil and criminal proceedings in several countries.
Results 1-20 of 21
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Stephen David Allred Stephen David Allred
Counsel
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146
Email
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
Email
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
Email
T: +1 919 755 6678
F: +1 919 755 6581
vCard
William Anderson William L. Anderson
Attorney
Bank of America Tower
50 North Laura Street
Suite 3300
Jacksonville, FL 32202-3661
Email
T: +1 904 798 3465
F: +1 904 798 3265
vCard
Jennifer Marie Arno Jennifer Marie Arno
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146
Email
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
Email
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
Email
T: +1 704 343 2324
F: +1 704 444 8765
vCard
Alicia A. Baiardo
Associate
505 Sansome Street
Suite 700
San Francisco, CA 94111
Email
T: +1 415 844 1973
F: +1 415 844 1916
vCard
Patricia Bates Patricia L. Bates
Associate
1345 Avenue of the Americas
7th Floor
New York, NY 10105-0106
Email
T: +1 212 548 2164
F: +1 212 715 6261
vCard
R. R. Locke Beatty R. Locke Beatty
Associate
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146
Email
T: +1 704 343 2244
F: +1 704 353 6160
vCard
Marshall Beil Marshall Beil
Counsel
1345 Avenue of the Americas
7th Floor
New York, NY 10105-0106
Email
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
Email
T: +1 704 373 4620
F: +1 704 373 8836
vCard
Andy Bernardini Andrew N. Bernardini
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146
Email
T: +1 704 373 4616
F: +1 704 373 8824
vCard
Thomas M Beshere Thomas M. Beshere
Counsel
Gateway Plaza
800 East Canal Street
Richmond, VA 23219-3916
Email
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
Email
T: +1 904 798 2685
F: +1 904 360 6304
vCard
J. William Boland J. William Boland
Partner
Gateway Plaza
800 East Canal Street
Richmond, VA 23219-3916
Email
T: +1 804 775 4374
F: +1 804 698 2015
vCard
Andrew Bowman Andrew B. Bowman
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146
Email
T: +1 704 343 2206
F: +1 704 444 8745
vCard
Jeff Brown Jeffrey L. Brown
Associate
2001 K Street N.W.
Suite 400
Washington, DC 20006-1040
Email
T: +1 202 857 2447
F: +1 202 828 3311
vCard
Matthew M Calabria Matthew M. Calabria
Associate
434 Fayetteville Street
Suite 2600
Raleigh, NC 27601
Email
T: +1 919 755 6692
F: +1 919 755 6612
vCard
Brian Calub Brian A. Calub
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146
Email
T: +1 704 343 2009
F: +1 704 373 8842
vCard
Adrian Canzoneri Adrian Canzoneri
Associate
505 Sansome Street
Suite 700
San Francisco, CA 94111
Email
T: +1 415 844 1985
F: +1 415 844 1921
vCard
Caitlin Carson Caitlin A. Carson
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146
Email
T: +1 704 373 4632
F: +1 704 373 8832
vCard
Natalie C Carter Natalie C. Carter
Attorney
201 North Tryon Street
Suite 3000
Charlotte, NC 28202-2146
Email
T: +1 704 343 2270
F: +1 704 353 6163
vCard
Tim Ceperley Tim G. Ceperley
Attorney
1800 Century Park East
8th Floor
Los Angeles, CA 90067-1501
Email
T: +1 310 315 8277
F: +1 310 956 3157
vCard
Heather Britton Heather Britton Chaney
Associate
1750 Tysons Boulevard
Suite 1800
Tysons, VA 22102-4215
Email
T: +1 703 712 5015
F: +1 703 712 5236
vCard
Results 1-4 of 4
Event

FCPA Transactional Diligence:

Can You Be Commercial and Compliant?

December 3, 2014
New York, NY
Event

Community Banking and Cyber Risk Management

Legal, Regulatory, Litigation and Insurance Issues

September 17, 2014
Chicago, IL
Speaking Engagement

North Carolina Bar Association’s Corporate Counsel Section CLE

Key Risk Management and Insurance Issues for Corporate Counsel

May 16, 2013
Results 1-4 of 4
Results 1-20 of 73
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Legal Alert

CFPB Proposes Multiple Changes to TRID “Know Before You Owe” Rule

Subject to Inquiry
August 9, 2016
Legal Alert

CFPB Issues Final Mortgage Servicing Rules

Subject to Inquiry
August 5, 2016
Legal Alert

CFPB Sues Payment Processor for Facilitating Fraudulent Transactions

Subject to Inquiry
June 9, 2016
Legal Alert

CFPB Announces Plan to Promulgate Key Mortgage Disclosure Rule

Subject to Inquiry
May 16, 2016
Legal Alert

CFPB’s First-Ever Data Security Enforcement Action

Subject to Inquiry
March 17, 2016
Legal Alert

CFPB Announces Two-Year Policy Priorities

March 15, 2016
Legal Alert

CFPB Still Pushing to Regulate Payday Lenders

Subject to Inquiry
March 8, 2016
Legal Alert

CFPB Takes Aim at Overdraft Fees and Screening Inaccuracies

Subject to Inquiry
February 23, 2016
Legal Alert

Proposed Amendments to Fair Credit Reporting Act

February 19, 2016
Results 1-20 of 73