Cole Schotz Represents Litigation Trustee in $44.5 Million FinTech Lender Class Action Settlement
Cole Schotz P.C. represented the Litigation Trustee, former bankruptcy judge Hon. Russell F. Nelms (Ret.), as a participant in a $44.5 million global settlement in the U.S. District Court for the Eastern District of Virginia over litigation stemming from claims that approximately 1.1 million consumer borrowers nationwide were defrauded by subprime lender Think Finance, LLC for attempting to use the sovereign immunity of Native American tribes to charge usurious interest rates and avoid prosecution.
The firm represented the Litigation Trustee in two adversary proceedings filed in bankruptcy court against Elevate Credit, Inc., a publicly traded fintech lender which spun off from Think Finance before it filed for bankruptcy, and against approximately 80 former shareholders of Think Finance for alleged intentional and/or constructive fraudulent transfers made as part of a complex scheme to remove the assets from the reach of creditors. The net settlement proceeds will be added to the other recoveries obtained by the Litigation Trustee, and distributed to the consumer borrower class members.
The Cole Schotz team was led by member Gary H. Leibowitz, and included members Irving E. Walker, James W. Walker, Brian L. King and Michael R. Yellin, associates H.C. Jones III, Ian R. Phillips and Peter J. Strom, and paralegal Kathleen Ryan Sermabekian.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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