Financial Services: Litigation

Overview

Our attorneys handle significant litigation for financial institutions and are familiar with the risks in today’s ever-shifting regulatory and economic environment. With offices coast to coast, our nationally recognized litigation team wins cases and resolves disputes that threaten our clients’ competiveness. We handle arbitrations, mediations, enforcement proceedings, and class actions. We represent financial institutions in disputes with commercial entities, borrowers, third-party vendors and other financial institutions, as well as dealing with federal agencies such as the Department of Justice, Securities and Exchange Commission, Federal Deposit Insurance Corporation, and other agencies at the state and federal levels. We also handle litigation arising out of bankruptcy and restructuring work.

BakerHostetler was named a “go-to law firm” for litigation by Corporate Counsel® magazine’s general counsel survey of in-house law departments at the nation’s top companies. Our litigators are former prosecutors, veteran civil trial lawyers, and former enforcement officials from various agencies, and they have credentials that have won them inclusion in Best Lawyers in America and Chambers USA as well as fellowship in the American College of Trial Lawyers. They are nationally regarded for their prelitigation strategies and decisions and their ability to prepare, try, and win cases.

In the increasingly important arena of privacy and data protection, our nationally recognized team has represented more than 50 financial institutions and service providers. We are adept at handling all aspects of privacy- and data security-related litigation. This includes the class actions that may follow a data security incident as well as litigation based on state and federal laws. We have a successful record of obtaining denials of class certification, dismissals, and summary judgments as well as severely limiting clients’ exposure to damages.

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We are recognized globally for our work as lead counsel to Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. To date, on behalf of the SIPA Trustee, our attorneys have led the recovery of more than 62 percent of an estimated $17.5 billion in principal lost in the massive Ponzi scheme. This international Madoff Recovery Initiative has positioned BakerHostetler as a leader in litigation on complex issues related to intricate financial structures.

We understand that business disputes often touch upon many different issues and services. Our multidisciplinary strengths enable our firm to handle any contract, antitrust, business crime, energy, class action, commercial, environmental, intellectual property, construction, securities, or whistle-blower issue you may encounter. Our solution-oriented advice is focused on helping you achieve your business goals, and to that end we are responsive, practical, and efficient.

What we do
  • Appeals
  • Bank product litigation
  • Class actions
  • Commercial litigation
  • Consumer litigation
  • Data privacy
  • EFTA, FDCPA, FCRA, FIRREA, RESPA, TILA, UCC, and UDAAP matters
  • ERISA litigation
  • Mortgage servicing litigation
  • Trust litigation
Those we work with
  • Financial institutions and lenders
    • Superregional and regional banks
    • Thrifts & S&Ls
    • Mortgage lenders
    • Auto lenders
    • Credit-card issuers
    • Student lenders
  • Nonbank and niche lenders
    • Debt funds
    • Insurance companies
    • Healthcare financers
    • Payday lenders
  • Service providers
    • Loan servicers
    • Payment card systems
    • Payment processors

Select Experience

  • Represented a bank in a putative ERISA “stock drop” class action valued at $1.5 billion. The plaintiffs’ consolidated complaint took aim at the bank, its trust oversight committee, and several high-ranking officials, accusing them of concealing the bank’s true financial condition and thus causing the bank’s 401(k) plan participants to purchase company stock at inflated prices. The Sixth Circuit unanimously affirmed the dismissal of the plaintiffs’ complaint.
  • Defeated a class certification in a putative nationwide class action brought by an individual borrower alleging violations of the Real Estate Settlement Procedures Act (RESPA). The plaintiff alleged that the bank and its subsidiary, an affiliated real estate settlement service provider, engaged in kickbacks and fee splitting.
  • Appointed by the U.S. government five times to manage federal monitorships, including critical monitorships for Merrill Lynch and The Bank of New York Mellon Corporation.
  • Represented a bank in a commercial class action alleging speculative, excess, and overstated loan interest charges. On behalf of the financial institution, we obtained complete dismissal of putative nationwide and state class actions involving allegedly improper commercial billing practices. Other banks had previously settled parallel claims for eight figures.
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Professionals

Name Title Office Email
Partner Cleveland
Associate Columbus
Associate Cleveland
Partner New York
Partner Denver
Associate Cleveland
Partner Washington, D.C.
Partner Cleveland
Counsel Cleveland
Partner Cleveland
Counsel Denver
Partner New York
Partner Seattle
Partner Cleveland
Counsel New York
Staff Attorney Cleveland
Partner Orlando
Partner Cincinnati
Partner Cleveland
Counsel Cincinnati
Associate Columbus
Partner Seattle
Partner Cleveland
Partner Denver
Partner Cleveland
Partner Columbus
Associate Costa Mesa
Partner Cleveland
Partner Cleveland
Associate Philadelphia
Partner Cleveland
Partner Cincinnati
Counsel New York
Partner New York
Partner Cleveland
Associate Cleveland
Partner New York
Partner Orlando
Partner Cleveland
Partner New York
Partner Cleveland
Partner Orlando
Associate Columbus
Partner Cleveland
Associate Columbus
Partner Cleveland
Partner Cleveland
Partner Chicago
Associate Atlanta
Associate Costa Mesa
Partner Washington, D.C.
Partner Cleveland

Experience

  • Represented a bank in a putative ERISA “stock drop” class action valued at $1.5 billion. The plaintiffs’ consolidated complaint took aim at the bank, its trust oversight committee, and several high-ranking officials, accusing them of concealing the bank’s true financial condition and thus causing the bank’s 401(k) plan participants to purchase company stock at inflated prices. The Sixth Circuit unanimously affirmed the dismissal of the plaintiffs’ complaint.
  • Defeated a class certification in a putative nationwide class action brought by an individual borrower alleging violations of the Real Estate Settlement Procedures Act (RESPA). The plaintiff alleged that the bank and its subsidiary, an affiliated real estate settlement service provider, engaged in kickbacks and fee splitting.
  • Appointed by the U.S. government five times to manage federal monitorships, including critical monitorships for Merrill Lynch and The Bank of New York Mellon Corporation.
  • Represented a bank in a commercial class action alleging speculative, excess, and overstated loan interest charges. On behalf of the financial institution, we obtained complete dismissal of putative nationwide and state class actions involving allegedly improper commercial billing practices. Other banks had previously settled parallel claims for eight figures.
  • Representing a federally insured bank in a matter involving a novel banking product being offered to consumers. We represent the bank in five parallel putative nationwide class action lawsuits initially filed in federal courts, now consolidated in a single action. The lawsuit is the first of its kind and raises complicated issues of first impression in a highly regulated area of law overseen by a number of agencies and regulations, including usury, TILA, and EFTA.
  • Successfully moved to dismiss a statewide consumer class action seeking to hold the client, a large regional bank, liable under the Uniform Commercial Code and Ohio common law in connection with a Ponzi scheme involving unregistered securities orchestrated by a third party.
  • Represented the only defendant bank to obtain a summary judgment in a multiparty lawsuit. The litigation was brought by a software company’s former CEO and largest shareholder, who made allegations against the bank that it engaged in collusion and conspiracy to loot the company in its role as a senior lender in a multilayer financing structure. The win eradicated a claim for $20 million in compensatory damages and unspecified amounts in punitive damages sought by the plaintiff.

News

Publications

Articles

Key Contacts

Blog

In The Blogs

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Financial Services Blog
Cordray to Resign as CFPB Director
November 16, 2017
In an email to CFPB staff on Wednesday, Director Richard Cordray announced that he will resign by the end of November. Although it is rumored that Director Cordray will run for governor of Ohio, he did not specify his future plans in the...
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Financial Services Blog
Second Circuit: Secured Lender Not Entitled to a Make Whole Premium in “Cramdown” Restructuring, But May Be Entitled to Higher Interest Rate
October 31, 2017
On October 20, in Matter of M.P.M. Silicones, L.L.C. (“M.P.M. Silicones”), the United States Court of Appeals for the Second Circuit held that secured noteholders were not entitled to an approximately $200 million make-whole premium when...
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Financial Services Blog
SEC Advisory Committee To Discuss Implications of Blockchain for Securities Markets – No Action Imminent
October 2, 2017
Blockchain technology has made the agenda for the October 12, 2017 meeting of the SEC’s Investment Advisory Committee, the SEC announced on September 22, 2017. The Committee will be hosting a two-hour panel discussion among industry...
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Financial Services Blog
CFPB alleges disparate treatment in Amex’s US territories’ credit and collection practices
September 26, 2017
The Consumer Financial Protection Bureau (CFPB) has issued a Consent Order addressing alleged disparate treatment by banks in overseas territories of the United States. The Consent Order illuminates the CFPB’s approach to disparate...
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Financial Services Blog
Second Circuit Dismisses FACTA Class Action Under Spokeo
September 21, 2017
The Second Circuit’s Sept. 19, 2017 decision in Katz v. The Donna Karan Company, LLC, et al., Dkt. No. 15-464, has potentially provided a new road map to defeating class actions alleging statutory damages for bare procedural violations...
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