Financial Services Litigation

Overview

Clients in the financial services industry turn to Parker Poe to resolve high-stakes disputes around the country, including class actions, litigation and investigations concerning alleged fraudulent investment schemes, government investigations, and FINRA arbitrations. Our clients include banks, broker-dealers, private lenders, fintech companies, and insurers. They rely on us because of our deep experience navigating the challenges they face, informed by our firm’s long history of serving the financial sector and our prior roles in house and in government.

We have handled a range of consumer class actions for financial services companies, including those related to their products and disclosures. Because of the breadth of our firm’s class action practice, we have experience with both common and novel claims these clients may face, from wage and hour violations and other employment disputes to data privacy violations in the context of internet tracking technologies.

We have also defended financial services companies in other large, multi-plaintiff cases. These include allegations of investment fraud — including Ponzi schemes, securities fraud related to public and private offerings, and violations of federal and state securities laws — as well as shareholder derivative actions and consumer protection claims.

We have helped clients navigate regulatory and criminal investigations related to those cases and others. We have represented clients in encounters with the U.S. Department of Justice (DOJ), the U.S. Securities and Exchange Commission (SEC), FINRA, the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), state attorneys general, and other prosecutors and regulators. Clients have turned to us when they are the target of an investigation or a major witness, including as a third party facing a subpoena from a government agency.

Representative Experience

Class Action Litigation

Defeated an approximately 250,000-person class action against a financial services company at trial and on appeal. The U.S. Court of Appeals for the Fourth Circuit upheld the U.S. District Court for the Western District of North Carolina's ruling that our client properly advised and managed a company's 401(k) plan based on requirements under the Employee Retirement Income Security Act of 1974 (ERISA).
Obtained dismissal of putative class action in favor of national financial services company.
Defended a financial institution against a putative class action stemming from a vendor’s cybersecurity incident; plaintiffs voluntarily dismissed the case following negotiations.
Defended against a national putative class action lawsuit in federal court asserting claims under the Fair Credit Reporting Act (FCRA) by successfully compelling individual arbitration.
Defended a financial institution and its officers and directors in a putative class action lawsuit in federal court in South Carolina asserting breach of fiduciary duty claims and violations of the securities laws.
Represented national coalition of credit unions in amicus brief before the U.S. Court of Appeals for the Fourth Circuit, defending a district court order striking class allegations in a putative disparate impact discrimination case.

Broker-Dealer Disputes

Defended broker-dealer and Fortune 500 insurance company in over 120 claims relating to an alleged Ponzi scheme, including obtaining summary judgment in certain cases and successful resolution of other cases in connection with U.S. Bankruptcy Court and North Carolina Business Court.
Represented a global broker-dealer in a fast-moving attempt to seek preliminary injunction in connection with parallel FINRA arbitration that led to successful settlement.
Secured multiple defense verdicts for broker-dealers and financial services companies in arbitration proceedings, including an alleged $8 million wrongful termination, breach of contract, and defamation claim in a FINRA arbitration proceeding.
Represented broker-dealers facing regulatory scrutiny from the SEC and FINRA over alleged off-channel communications and other enforcement actions.
Represented broker-dealers in full range of disputes, including:
- FINRA industry/competitive disputes such as raiding and recruiting cases involving noncompete and non-solicitation agreements, breaches of contracts and confidentiality clauses, and financial advisor promissory note cases.
- FINRA customer cases (and similar cases in the courts) alleging unsuitability, fraud, negligence, churning, and failure to supervise, among other claims.

Regulatory & Criminal Disputes

Served as lead pool counsel for over 300 employees at a national bank in a multidistrict investigation that involved state attorneys general, U.S. attorneys, and the SEC.
Defended numerous corporate and individual clients investigated by the DOJ and other enforcement agencies for financial and regulatory crimes, including alleged participation in Ponzi schemes.
Represented an asset management firm and its principals in an SEC investigation that resulted in no enforcement action being taken despite criminal sentences levied against alleged co-conspirators.
Represented a mortgage company regarding an investigation conducted by the North Carolina Commissioner of Banks, which resulted in no formal charges being filed.
Defended financial services companies facing investigation and enforcement involving the CFPB's mortgage servicing rules.
Represented financial services companies facing investigation and enforcement involving the Equal Credit Opportunity Act (ECOA) and Regulation B, the Fair Housing Act (FHA), the Americans with Disabilities Act (ADA), and other fair lending and civil rights laws.
Represented financial services companies in investigations and litigation involving the False Claims Act (FCA), Truth in Lending Act (TILA), Paycheck Protection Program (PPP), Real Estate Settlement Procedures Act (RESPA), Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), and other federal and state laws.

Additional Financial Services Litigation

Litigated cases involving complex financial instruments (such as interest rate swaps and letters of credit) in federal court and the North Carolina Business Court.
Represented national bank in a unanimous decision of South Carolina Supreme Court upholding validity and scope of jury trial waiver in commercial loan documents.
Defended financial services companies from lender liability claims, including borrower/guarantor claims for misrepresentation, fraud, tortious interference with business, negligence, unfair trade practices, and related tort actions.
Represented financial services companies in all aspects of the collection of outstanding debts, including commercial foreclosures, bankruptcies, receiverships, federal and state court collection actions, and arbitrations.
Represented banks in equipment finance litigation and other disputes tied to loans secured by commercial equipment.
Defended banks against alleged wire fraud and other claims involving retail or branch operations.
Represented financial services companies in a broad variety of real estate, employment, and intellectual property disputes.
Represented banks as parties in complex probate cases.