News & Analysis as of

Lenders Motion to Dismiss

Orrick, Herrington & Sutcliffe LLP

District court finds communicating digitally enough to hold defendants liable for doing business in state

On May 29, the U.S. District Court for the Middle District of North Carolina denied a motion to dismiss an action filed against several finance companies accused of violating North Carolina’s consumer protection laws. The...more

Orrick, Herrington & Sutcliffe LLP

CFPB dismisses case against lease-to-own finance company

On May 27, the CFPB submitted its motion to dismiss a lawsuit with prejudice filed against a lease-to-own finance company and several other entities. As previously covered by InfoBytes, the CFPB sued the lease-to-own finance...more

King & Spalding

Southern District of New York Allows Fraudulent Transfer Claims Accusing JPMorgan and Others of Scheme, Dismisses Claims for...

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On March 27, 2025, the U.S. District Court for the Southern District of New York largely denied a motion to dismiss fraudulent transfer and tortious interference claims arising out of a dispute over the financing and...more

Troutman Pepper Locke

Indiana Federal Court Dismisses FDCPA Suit Alleging Violations for being an Unlicensed Debt Collector

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In a recent decision from the U.S. District Court for the Northern District of Indiana, the court granted a motion to dismiss in favor of a debt collection law firm and one of its attorneys who were not licensed as debt...more

Orrick, Herrington & Sutcliffe LLP

U.S. SDNY dismisses some claims and allows Bureau to file amended complaint in military lending case

On March 24, U.S. SDNY released its opinion and order granting dismissal, in part, with respect to counts two through five (and related claims under count six) in a case the CFPB brought against a loan company group (the...more

Proskauer Rose LLP

The End of Non-Pro Rata Uptiers? Fifth Circuit Rules that Serta Exchange was Not an “Open Market Purchase”

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The United States Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) ruled on December 31, 2024 that Serta Simmons Bedding’s (“SSB”) 2020 uptier exchange included a transaction that, contrary to the assertions of...more

Seward & Kissel LLP

Red River Rivalry, Ethical Lapse, Containment Facility, and Affirmative Consent

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J&J talc opponents decry bankruptcy as "deja vu all over again" | Reuters - Johnson & Johnson's latest bankruptcy attempt faced immediate opposition from cancer victims' attorneys. They argued that the bankruptcy was a...more

Akin Gump Strauss Hauer & Feld LLP

Supreme Court Declines to Review 2nd Circuit Decision That Syndicated Term Loans Are Not Securities

On February 20, 2024, the U.S. Supreme Court declined to hear an appeal brought by the trustee of the Millennium Lender Claim Trust challenging the U.S. Court of Appeals for the 2nd Circuit’s August 2023 decision, in which...more

Proskauer Rose LLP

Staying Afloat in an Uncertain Economic World: Hope for the Best, Prepare for the Worst Private Credit Restructuring Year in...

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While global inflation and higher-for-longer interest rates dominated macroeconomic headlines over the last year, middle-market private credit restructurings witnessed three notable trends.  First, these credits remained...more

Orrick, Herrington & Sutcliffe LLP

District Court denies motion to dismiss State Attorneys’ General case against “subprime lender”

On January 12, the U.S. District Court for the Eastern District of Pennsylvania denied a defendant’s motion to dismiss a case brought by five State Attorneys General (State AGs) from Pennsylvania, New Jersey, Oregon,...more

King & Spalding

New York Appellate Court Keeps Power Plant Lawsuit Against Lenders Alive

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On July 13, 2023, a New York intermediate appellate court held that Iberdrola could continue pursuing all but one of its claims against a bevy of lenders in connection with a construction contract for a power plant in...more

King & Spalding

Aiding and Abetting Breach of Fiduciary Duty Claims Against Lender Survive Motion to Dismiss

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On April 26, 2023, the U.S. Bankruptcy Court for the District of Delaware denied in part and granted in part motions to dismiss a chapter 7 trustee’s breach of fiduciary duty and aiding and abetting claims. The defendants...more

King & Spalding

Southern District of New York Denies Lender’s Motion to Dismiss in $272 Million Ray-Ban Cybertheft Lawsuit

King & Spalding on

On January 4, 2023, the U.S. District Court for the Southern District of New York granted in part and denied in part JPMorgan’s motion to dismiss claims by Essilor International SAS and Essilor Manufacturing (Thailand) Co.,...more

Proskauer Rose LLP

Liability Management – Vaccine or Pandemic? Private Credit Restructuring Year in Review

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Once again, we reflect on the prior year for restructuring trends impacting private credit lenders. Last year it was all about “liability management”—the latest trend in which the limits of sponsor-favorable loan documents...more

Proskauer Rose LLP

Boardriders: Minority Lenders Win Round One

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A common yet contentious liability management strategy is an “uptier” transaction, where lenders holding a majority of loans or notes under a financing agreement seek to elevate or “roll-up” the priority of their debt above...more

Cadwalader, Wickersham & Taft LLP

Federal Court Holds That Student Loan Trusts Are Subject to CFPB Enforcement Authority: What This Means for Consumer...

On December 13, 2021, Judge Stephanos Bibas, visiting judge in the U.S. District Court for the District Delaware from the U.S. Court of Appeals for the Third Circuit, denied a motion to dismiss a lawsuit brought by the...more

Conn Kavanaugh

Massachusetts Supreme Judicial Court Strengthens Weapons Available to Defendant Landowners Facing Defective Claims Allegedly...

Conn Kavanaugh on

In cases allegedly involving an interest in real property, the Massachusetts lis pendens statute, G.L. c. 184, § 15, allows the defendant to file a special motion to dismiss frivolous claims. If the trial court allows the...more

Burr & Forman

Eleventh Circuit Finds Forum Selection Clause and Class Action Waiver in Payday Loan Agreements Unenforceable as against Georgia...

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In Davis v. Oasis Legal Fin. Operating Co., LLC, 18-10526, 2019 WL 4051592 (11th Cir. Aug. 28, 2019), the U.S. Court of Appeals for the Eleventh Circuit (“Eleventh Circuit”) affirmed a decision in the U.S. District Court for...more

Womble Bond Dickinson

Trustee Survives Judgment in Fraudulent-Conveyance Action Based on Novation Argument

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The Sixth Circuit recently ruled that a trustee’s claim that a novation occurred upon the execution of amended and restated loan documents could not be dismissed under a Rule 12 (b)(6) motion. The Sixth Circuit remanded the...more

Womble Bond Dickinson

Undisputed? Allegations of Inconsistent Communications from Auto Lender Survive Motion to Dismiss

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In Hindle v. Toyota Motor Credit Corporation, 2018 WL 6033484 (D. Mass. Nov. 16, 2018), Plaintiffs alleged that they wanted to own their Prius rather than continue to lease it in order to lower their monthly payments....more

Snell & Wilmer

What Types of “Damages Claims” Survive a Trustee’s Sale?

Snell & Wilmer on

Arizona’s trustee’s sale statutory scheme provides for the waiver of all defenses and objections to a trustee’s sale that: (i) are not raised prior to the sale, and (ii) do not result in an injunction against the sale going...more

Mintz - Securities Litigation Viewpoints

Lending Club Decision Provides Guidance For Bringing Section 11 Claims Based on Weaknesses in Internal Controls

We have been following defendants’ motions to dismiss in the In re Lending Club Securities Litigation class action, No 3:16-cv-02627-WHA, in the United States District Court for the Northern District of California (“the...more

Smith Debnam Narron Drake Saintsing & Myers,...

Inaccurate TILA Disclosures Not Enough to Create Standing

A district court from New York recently ruled that even assuming a creditor’s initial TILA disclosures fell short under the statutory requirements, the plaintiff must show an injury in fact in order to have standing under...more

Orrick, Herrington & Sutcliffe LLP

Rejecting "True Lender" Arguments, California District Court Dismisses Claims Against Student Loan Servicers

This past Thursday, September 22, a federal district court in the Central District of California dismissed an action raising usury claims against several student loan servicers, rejecting the plaintiffs' arguments based on...more

BCLP

Bankruptcy Courts Closing In – Will An Agreement Requiring Unanimous Consent To File For Bankruptcy Be Effective?

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We’ve all seen it. The business opportunity looks enticing but is laced with risk about a potential bankruptcy filing down the road. As bankruptcy lawyers we are often asked how deals can be structured to prevent a...more

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