Tag Archives: class action

Mnuchin’s OneWest Avoided Force-Placed Insurance Class Actions During Crisis

OneWest Bank, the mortgage servicer previously owned by Treasury Secretary Steven Mnuchin, has been accused by homeowner groups of a type of foreclosure abuse involving lender-placed, or force-placed, insurance.

Mortgage servicers are able to force insurance policies on homeowners during a lapse in coverage, when premiums haven’t been paid or the homeowner has no hazard insurance. Sometimes force-placed policies stem from changes in flood maps or other risks from catastrophic events.

Numerous class actions accused mortgage servicers during the 2010 foreclosure crisis of forcing expensive LPI policies on homeowners, when those policies weren’t necessary.

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Citigroup, JPMorgan Face Euribor Antitrust Class Action

Law360, New York (February 21, 2017, 10:34 PM EST) — A New York federal judge on Tuesday trimmed a putative class action brought by investors who say they lost money in derivatives transactions because big banks conspired to manipulate Euribor, the euro interbank offered rate. But two plaintiffs, including a California retirement fund, still have claims against JPMorgan and Citigroup.
U.S. District Judge Kevin Castel cut four plaintiffs from the suit, saying they lacked standing, as well as six foreign defendants who didn’t fall under his jurisdiction because their allegedly illegal activities weren’t tied to the U.S. He also dismissed all Racketeer Influenced and Corrupt Organizations Act and Commodity Exchange Act claims from the suit and cut three out of four Sherman Act claims in the case.

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Wells Fargo Hit With Class Action Over Target-Date Funds

Nov. 23 — Wells Fargo & Co. enriched itself at its employees’ expense by including costly, in-house target date funds in its 401(k) plan, a new class action complaint alleges ( Meiners v. Wells Fargo & Co. , D. Minn., No. 16-cv-03981, complaint filed 11/22/16 ).

In the past year, several proposed class actions have targeted financial companies that include in-house investment products in their 401(k) plans. The employees bringing these suits have seen success in many instances, with courts refusing to dismiss cases against BB&T Corp., Putnam Investments LLC, Allianz Asset Management of America and Deutsche Bank.

This lawsuit, filed Nov. 22 in a Minnesota federal court, accuses Wells Fargo of intentionally boosting the 401(k) assets invested in the company’s own target date funds by defaulting participant contributions into those funds through a “quick” and “easy” enrollment process. The Wells Fargo funds consistently underperformed comparable target date funds, despite carrying fees 2.5 times higher, the suit alleges.

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Florida woman files class action against Wells Fargo for ‘phony’ accounts

A Florida woman launched a class-action lawsuit against Wells Fargo Bank after employees created millions of fraudulent accounts nationwide.

Brandon resident Nadine Stanton is suing on behalf of herself and others affected by the fraudulent accounts created by employees of the California-based banking giant. Stanton is a practice manager at United Vein Centers.

Stanton is claiming to be one of thousands of victims of the bank’s “colossal scheme” where they broke the law in numerous ways including using private information and data without consent.

Without permission of customers, employees performed several unauthorized tasks — opened accounts, transferred funds, applied for credit cards, received debit cards, and enrolled in online banking services.

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Wells Fargo hit with shareholder class action lawsuit over sales practices

A shareholder class action lawsuit was filed against Wells Fargo & Co on Monday that alleged the firm misled investors about its financial performance and the success of its sales practices.

Wells Fargo, the United States’ third-largest bank by assets, agreed to pay $190 million earlier this month to settle regulatory charges that some of its employees opened as many as 2 million accounts without customers’ knowledge, in order to meet sales targets.

Robbins Geller Rudman & Dowd LLP announced the lawsuit and is seeking class action status on behalf of buyers of the company’s shares between Feb. 26, 2014 and Sept. 15, 2016.

The lawsuit, which was filed in the U.S. District Court of Northern California, comes nearly a week after Wells Fargo chief executive John Stumpf faced U.S. Senate lawmakers about his oversight at the bank.

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Bank Of America To Pay $1.9M To Settle Calif. OT Claims

Law360, Los Angeles (August 22, 2016, 10:21 PM ET) — Bank of America NA reached a settlement for $1.9 million with a class of 100 employees in California federal court on Monday, potentially putting an end to a case filed last fall over customer service representatives getting shorted on pay.

Candice Williams brought the action on behalf of dedicated service directors at Bank of America’s Brea, California, location alleging that the bank wrongfully classified the workers as administrative employees in order to avoid paying overtime.

The parties reached a $1.9 million settlement in May, according to…

Source: Law360

HUD mortgage sales harm black neighborhoods, lawsuit says

New lawsuit follows Center for Public Integrity report on mortgage sales

New York City homeowners filed a class action lawsuit on August 12 alleging that auctions of government-insured mortgages discriminate against predominately African-American neighborhoods.

The lawsuit involves a U.S. Department of Housing and Urban Development (HUD) program that since 2010 has auctioned delinquent mortgages insured by HUD’s Federal Housing Administration (FHA).

The program, the lawsuit states, strips homeowners of FHA protections without first informing them that their mortgage could be sold.

The Center for Public Integrity first investigated the HUD program in 2015, finding that the mortgages were sold at a steep discount and only 16.9 percent of mortgages sold between 2010 and 2014 successfully avoided foreclosure.

As part of that investigation, the Center for Public Integrity mapped the results of HUD’s auctions in New York City and Baltimore. The map showed that the mortgages clustered in neighborhoods with a higher proportion of minorities.

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