Financial Services Litigation

Payments Industry Disputes. We represent various actors in the “payments industry ecosystem” – the intricate network of parties, technology, processes and regulations that combine to enable the seamless payment of money for goods and services. These actors include Sub-Merchants, Payment Networks, Issuing Banks, Acquiring Banks, Payment Processors, Payment Gateways, Merchant Service Providers (MSPs), Independent Sales Organizations (ISOs), Payment Facilitators (PayFacs) and Card Brands. We have brought and defended against payments industry cases involving high-six and seven-figure damages claims.

Cases Involving “Chargebacks.” A chargeback is a forced (credit card) payment reversal resulting from a disputed charge that occurs when the issuing bank determines the charge to be illegitimate, debits the amount of the disputed transaction from the Merchant’s account (leading the Merchant to debit the same amount from the Sub-Merchant’s account) and issues a corresponding credit to the cardholder (customer).

Merchant Cash Advance (MCA) Litigation. A merchant cash advance is an alternative type of business financing where the Merchant Cash Advance company purchases a set amount of future accounts receivable from a business (merchant), “advancing” a lump-sum payment for those receivables which are paid in installments. Merchant Cash Advance Litigation often occurs between Merchant Cash Advance companies and merchants, in Bankruptcy proceedings, to enforce personal guaranties, in actions brought by the FTC or Attorneys General, and between Banks and MCA companies.

Factoring, Reverse Factoring (“Supply Chain Financing”) and Forfaiting Disputes. Factoring is a form of finance, common in the Trucking, Staffing, Manufacturing, Government Contracting, Construction and Medical industries, in which a business sells its accounts receivable (i.e., unpaid invoices) to a third party (a “Factor”) at a discount. This arrangement provides the business access to immediate capital and cash flow while enabling the Factor to collect payment directly from the “Account Debtor” for the full invoice amount. Disputes arise in many scenarios, such as when an Account Debtor fails to directly pay the Factor following a Notice of Assignment and when a third party challenges the validity of the Factor’s security interest.

Government Investigations and Enforcement Actions. Financial institutions, alternative financiers and other business entities in financial services industries may face investigations or lawsuits initiated by the Federal Trade Commission, Department of Justice, Internal Revenue Service, Attorneys General, and state regulatory bodies, requiring internal investigations.

Breach of fiduciary duty and related claims arising from alleged bad investment performance. 

Complex Regulatory Regimens. Claims brought under the “alphabet-soup” of regulations including the Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act (TILA), Fair Debt Collection Practices Act (FDCPA), State Unfair, Deceptive or Abusive Acts or Practices (UDAAP) statutes, Fair Credit Reporting Act (FCRA) and Electronic Fund Transfer Act (EFTA).