Case Law

Five years after being named the defendant in a class-action discrimination lawsuit, the Consumer Financial Protection Bureau recently agreed to a proposed $6 million settlement with 85 employees who claim the bureau showed preferential treatment toward white and male employees to the detriment of their coworkers who are minorities and/or women.

When these employees complained about unfair treatment, they faced retaliation from management, according to official case filings.

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KeyCorp, the holding company for KeyBank, is facing a class action suit alleging it downplayed concerns regarding its liquidity.

The stockholder rights law firm that filed the action encouraged investors to contact the firm if they believed they were impacted by the company’s actions.

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After a decade of judicial back and forth, Fannie Mae and Freddie Mac (GSEs) stockholders were awarded $612 million by a jury.

A three-week trial resulted in the jurors finding the Federal Housing Finance Agency improperly amended stock purchase agreements and “shortchanged” stockholders $27 billion when it transferred ownership shares to the U.S. in 2012.

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A settlement between the Department of Justice and UBS AG and several of its U.S.-based affiliates has resulted in the bank paying over $1 billion in penalties.

This settlement brings to a close the last case brought in the wake of the 2008 financial crisis.

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The Federal Trade Commission (FTC), Intercontinental Exchange, Inc. (ICE) and Black Knight, Inc. filed a joint stipulation for dismissal of the FTC’s complaint and temporary restraining order against the proposed $11.7 billion agreement for ICE to acquire Black Knight.

The stipulation was filed without prejudice, meaning the matter could be brought back to court again.

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The Securities and Exchange Commission charged the founder of three unincorporated entities with conducting unregistered offerings of crypto asset securities that raised more than $1 billion in crypto assets from investors and with fraud for misappropriating at least $12 million of proceeds to buy, among other things, the largest black diamond in the world.

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The Consumer Financial Protection Bureau’s (CFPB) new rule requiring lenders to collect demographic data – one it was required to issue under the Dodd-Frank Act as well as a court order – has been blocked by a federal judge in Texas while the bureau waits to make its funding structure argument before the Supreme Court.

The injunction in the Southern District of Texas barred the CFPB from requiring Rio Bank of McAllen, Texas, and members of the Texas Bankers Association (TBA) and American Bankers Association (ABA) to comply with the small-business lending rule until the Supreme Court (SCOTUS) rules on the bureau’s funding.

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The U.S. District Court for the Southern District of New York ruled on a case where the Securities and Exchange Commission sued Ripple Labs, Inc. and two of its senior leaders for the unlawful offer and sale of securities in violation of the Securities Act of 1933.

The pivotal case is one of the first heard in a federal district court and determined whether digital tokens traded for value are considered securities under the act, setting the stage for further considerations.

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Amidst the flurry of briefs filed by parties and friends of the court, the U.S. Supreme Court announced the date it will hear the oral arguments on the constitutionality of the Consumer Financial Protection Bureau’s funding structure.

The question before the court has the potential to challenge everything the bureau has done since its creation and could impact other agencies that have similar funding structures so as to insulate them from political sway.

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A federal jury found a former director of a New York bank guilty of five counts connected to a scheme to obtain a fraudulent $1.4 million loan from the bank, which collapsed months after the incident. The maximum sentence he faces on all charges is 125 years in prison.

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