In recent years, high-profile class action settlements have been criticized for delivering little to no monetary relief to plaintiffs, instead, providing coupons, injunctive relief or “cy pres” relief in which the defendant makes charitable donations, while making large fee awards to attorneys.
The OCC has conducted a study finding that the Consumer Financial Protection Bureau’s arbitration rule is likely to increase the cost of credit by about 25 percent once lenders factor in the cost of class action litigation, Acting Comptroller Keith Noreika said today at a fintech conference hosted by the Federal Reserve Bank of Philadelphia.
ABA and a coalition of business trade associations yesterday urged the House Judiciary Committee to rein in the incentives created for disruptive private litigation under the Telephone Consumer Protection Act.
ABA and the Missouri Bankers Association have filed a friend-of-the-court brief in a Missouri case in which two mutual thrift depositors claim that they are entitled to a distribution of their thrift’s capital at the time the bank merged into another institution.
The possibility of a 4-4 deadlock hangs over three cases with repercussions for the banking industry when the Court convenes in October.
In a 6-2 decision, the Supreme Court today affirmed the principle that plaintiffs seeking to bring class actions in federal court must demonstrate concrete and particular “injury in fact” in order to have standing.
The May/June issue of ABA Bank Compliance magazine, now available online for subscribers, features a cover story on what continuing class action and enforcement litigation means for frontline bank compliance. Other stories cover what bankers are doing to “derisk,” how to build a positive compliance risk management culture and how to handle a change in