Dismissal of Fraud and RICO Claims Leads to Favorable Settlement for National Mortgage Co.

A nationwide mortgage banker and its top executives faced claims of fraud, breach of contract, breach of fiduciary duty, ERISA and RICO violations in a federal action brought against them by 11 former branch managers.  The plaintiffs sought $1.3 million in damages, plus punitive damages.  Vigorous defense of the case included extensive discovery and moving for summary judgment on all of the plaintiffs’ claims.  Owing to the multiple parties and claims, the complex summary judgment motion amounted to 44 separate motions.  The federal judge was persuaded to grant summary judgment in favor of the defendants on seven plaintiffs’ claims, and partial summary judgment on all but two claims of the remaining four plaintiffs.  The remaining plaintiffs, with the vast majority of their claims having been dismissed, settled for a nominal sum.

Location

U.S. District Court, Eastern District of California

Counsel

Related Industries

  • Financial Services

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