Financial Services Litigation

Our lawyers understand that the financial services industry operates in an increasingly complex and regulated environment. Emerging technologies, evolving consumer expectations and a changing regulatory landscape present new challenges for banks and financial institutions. From class action and regulatory enforcement to emerging issues in fintech and data privacy, we assist clients as they navigate a shifting legal landscape.

A centerpiece of the practice is the firm’s consumer financial services litigation team. Our lawyers have deep experience in the regulatory regimens that generate waves of high-stakes litigation: TILA, RESPA, FDCP, FCRA, TCPA and more. McGuireWoods’ Financial Services Litigation Practice Group also represents auto lenders in individual and class actions involving claims including alleged Uniform Commercial Code violations and add-on products.

What begins as a single borrower’s claim can quickly escalate into a class action, regulatory investigation or shareholder dispute. Financial institutions also may need to navigate insurance coverage issues to ensure a coordinated defense. Our financial services litigation team works seamlessly with McGuireWoods’ securities, class actions, government investigations and white collar litigation, shareholder/directors and officers litigation, accountants defense and insurance groups, offering clients comprehensive support to respond effectively.

McGuireWoods handles Ponzi scheme and fraud investigations and defends clients in related individual and class action litigation. These cases span state, federal and bankruptcy courts, and involve claims from investors, court-appointed receivers and trustees.

The Financial Services Litigation Practice Group also handles disputes over deposit and bank accounts, including UCC and EFTA claims. We enforce arbitration provisions to compel class actions into individual arbitration, with experience spanning auto contracts, deposit account agreements and credit card agreements.

Beyond litigation, the team works with clients to ensure compliance with federal and state regulations, helping them adapt to new rulemakings, regulatory guidance and enforcement priorities. Whether responding to CFPB examinations, OCC or FDIC supervisory actions, or state attorney general inquiries, McGuireWoods helps financial institutions manage regulatory expectations and mitigate enforcement risk.

How We Help

The Financial Services Litigation Practice Group litigates claims financial institution clients face 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 UCC, including fraudulent endorsements and fictitious payees.
• failed asset securitizations and defaulted syndicated loans, representing 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;
• responses to claims of breach of fiduciary duty by bank trust departments resulting from alleged poor investment performance;
• defense of claims against and investigations of broker-dealers by the SEC, FINRA and state regulators.
• responses 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;
• defense of individual and class actions challenging employment practices of bank clients, using the knowledge and experience of our labor and employment team;
• commercial disputes with vendors, lessors and suppliers, business torts and intellectual property protection matters; and
• individual and class actions involving alleged lending discrimination.

We call on our nationally recognized Discovery Counsel Services/E-Discovery Practice Group to manage the massive collection of data generated by financial institutions in the ordinary course of business.

Representative Experience

• Represented credit card issuers and servicers in individual and class actions alleging their marketing programs and disclosure practices violate federal and state consumer protection laws.
• Won a major victory for one of the largest financial institutions in the United States with the Hawaii Supreme Court affirming summary judgment in a wrongful-foreclosure case.
• Obtained a landmark settlement approval for litigation between a leading financial institution and a class of more than 2 million auto loan customers who claimed the institution unlawfully force-placed collateral protection insurance on their vehicles.
• Won a major victory for a significant financial services firm in nationwide trade secret cases, including federal litigation in California and Washington and concurrent FINRA arbitrations.
• Defended a financial institution in a proposed class action where credit card holders alleged improper foreign exchange rates. The court granted a full dismissal.
• Defended a financial institution against claims that its mortgage practices discriminated against minority homeowners. Several motions remain pending.
• Defended a mortgage servicer in a class action alleging improper property inspection fees. The court granted summary judgment, dismissing the claims, striking class allegations and denying a new class representative, effectively ending the case.
• Defended a financial institution in a class action and related receivership action alleging it aided a Ponzi scheme involving personal-injury settlement investments. The cases were consolidated for discovery purposes. The parties are briefing class certification and summary judgment.
• Defended a corporate trustee in a class action alleging breach of fiduciary duty for investing trust assets in affiliated actively managed funds instead of passive index funds. The court denied class certification, and the case was individually resolved and dismissed with prejudice.
• Defended a financial institution in a mass arbitration involving over 7,500 claimants alleging issues with auto finance loans. The firm assisted with pre-arbitration strategy, consumer file analysis and preparation for arbitration proceedings.
• Defended hundreds of individual and class action claims across the country that attack mortgage servicing and foreclosure practices.