Bank of America has settled another class action lawsuit with another set of investors over the issue of mortgage backed investments that it assumed after it acquired Countrywide Financial. According to news reports, Bank of America has agreed to pay $500 million to the plaintiffs, mostly pension funds, to settle lawsuits over the quality of the mortgages.
The world economy entered a recession in late 2007 mainly because the housing market froze. Lenders who borrowed money at teaser interest rates faced new steeper rates. Lending standards increased and investors stopped buying mortgage backed securities because news about the quality of the mortgages became public. Once investors found out, numerous class action lawsuits were filed against the huge banks, and many of them are still being litigated in court. This settlement is another in what seems to be an endless amount of lawsuits concerning mortgage backed securities.
RD Legal Funding, LLC (“RD Legal”) can provide interim post-settlement financing to plaintiff’s attorneys with Bank of America-Countrywide Financial settlements, which provides immediate capital on slow-paying settled legal fees. Lawsuit funding does not require any kind of payments until the fee is paid; there are no monthly interest or principal payments, no upfront points or fees. Once the necessary documentation is received, RD Legal can wire funds within several days. RD Legal provides personalized service and quick turnaround.
To find out more about RD Legal’s law firm funding solutions, please call Joseph Genovesi toll-free at 1-800-565-5177. For more details about RD Legal’s Fee Acceleration program, please visit our attorney fee funding page.
General Electric has agreed to settle a class action lawsuit by its shareholders over allegations it hid its exposure to subprime loans from them. The company is expected to pay $40 million to compensate the shareholders, most of them pension funds, for losses they suffered beginning 2008.
General Electric is one of the most successful companies in the world. Mostly known as a builder of items like air conditioners and light bulbs, its subsidiary, GE Capital, is a huge force in the world of finance. News stories about the settlement detail the plaintiffs’ accusations against GE Capital and their involvement in a 2008 stock offering which threatened the company’s financial position. That move caused them to lose their “AAA” credit rating, resulting in a dividend cut of almost 70%. GE is one of many companies who faced lawsuits because of their exposure to subprime loans.
Plaintiff’s attorneys with General Electric settlements are eligible for post-settlement attorney fee financing from RD Legal Funding, LLC (“RD Legal”) which provides immediate capital on settlements. Lawsuit financing does not require any kind of payments until the fee is paid; there are no monthly interest or principal payments, nor are there any upfront points or fees. Once the necessary documentation is received, RD Legal can wire funds within several days. RD Legal provides personalized service and quick turnaround.
For more information about RD Legal and their cash flow management solutions, please call Joseph Genovesi, Senior Vice President of Business Development and Origination, at 1-800-565-5177, ext. 140. To begin the application process, please fill out our brief online application.
According to news sources, a Xerox subsidiary Affiliated Computer Services Inc. has to pay $4.5 million to settle a class action lawsuit from employees who claim they weren’t paid for their work. The estimated 20,000 employees, former and current, are expected to receive between $50 and $260.
The plaintiffs alleged ACS did not pay proper wages and overtime at their call centers. They also claimed the company failed to pay bonuses and failed to count bonuses when adding overtime.
There seems to be a price fixing epidemic going on with different industries: the banks, technological developers, retailers, and now travel deal companies.
A class action lawsuit against Expedia, Travelocity, and big hotel chains like the Hilton and the Sheraton is accusing them of being in concert with each other to fix prices for hotel rooms. According to some news reports, booking agencies were pressured to raise rates to be at the same level as their competitors, who charged higher prices for the rooms.
The International Commission of Jurists published a paper about human rights abuses in China involving corporations. The report talks about the dynamics of how power works in the country between private companies and the state. The pursuit of human rights abuses would put that relationship in jeopardy.
Incidents like the Sichuan earthquake or the coal mine accidents would lead to lawsuits in most developed countries. This report comes out even as others report a growth of litigation funding in parts of the country like Hong Kong and a growing number of class actions arising in China.
While China still has a long way to go in regards to civil law and litigation, the country is taking steps that may one day lead to it being a full part of their legal system rather than an occurrence. The authors give some ideas on what kind of reforms would help China along the way, including more freedom and wider role for civil society and trade unions, as well as creating a victim-friendly litigation environment.
Ignite Restaurant, which owns chains like Joe’s Crab Shack and Brick House Tavern & Tap, is facing a class action lawsuit from shareholders who say the information they were given with the initial price offering was incorrect. They say when news of this hit the market, the stock priced dropped, which brought down the values of their shares.
Indian Country Today Media Network published an editorial that supported the decision by some to appeal the Cobell Settlement that would have Native American victims receive $3.4 billion. The reasoning in the editorial is the United States did not take responsibility for the discrimination it afflicted on Native American farmers. Another criticism was that the attorney’s fees were too high.
The author also points out that others opting out would void the entire settlement, basically bringing the case back to square one. This is the gift and the curse of having such a historic lawsuit and having so many class members in one case. The class members offer a community of people who share your pain, but it only takes a few members to dissolve what most class members may feel is a good deal. That basically starts the process all over again.
Cases like these are tough because getting a sizable deal may not come again, and the dissolving of a deal that both parties worked hard on only builds animosity between the two sides. Cobell by most accounts seems to be a good deal and it looks to be moving forward. This editorial shows how tough it is to balance a huge class of plaintiffs like this with very emotional ties to the case and get a good deal at the same time.
Legalfunding.com published a piece about what unpaid internships can do and how lawsuit funding can possibly change that. There is a new update on a huge class-action lawsuit against Fox Entertainment over the interns’ work on the Black Swan movie.
The plaintiffs are expanding the scope of the lawsuit to include the entire Fox Entertainment Group’s internship program. According to the Hollywood Reporter, the plaintiffs are seeking separate classes of interns in addition to expanding the lawsuit.
The New York Post reports a former employee of celebrity chef Daniel Boulud sued him alleging she was not given her full time wages and overtime and was forced to split her tips with her co-workers. She is the eighth worker who worked for Boulud who has sued him over similar charges and signed on to the pending class action lawsuit.
According to the story, there are more than 50 workers who can join her case. This is the latest in a string of class action lawsuits that has ensnared celebrity chefs for allegedly not paying their workers the full pay they are entitled to.
The Beebe Medical Center has reached a settlement in principle for over $100 million to resolve a class action lawsuit filed by patients of Earl Bradley, a convicted pedophile.
According to the lawsuit, the plaintiffs allege Beebe was negligent of duty when complaints of Dr. Earl Bradley were made about his contact with young girls. After an investigation, he was allowed to continue treating patients. He was later arrested and convicted on charges of rape, child exploitation, and assault involving about 86 victims.
There are estimates the number of plaintiffs could reach about 900 due to the class action status and the fact that Bradley has been practicing for 15 years.