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Client Success

Maslon Successfully Defends First Premier Bank in $500 Million RICO Class Action

August 2, 2024

Maslon attorneys proudly defended client First Premier Bank in a putative class action in the Eastern District of New York that was dismissed after 11 years of litigation, avoiding damages that could have exceeded $500 million.

Beginning in 2013, a group of payday loan borrowers filed lawsuits against various financial institutions, including First Premier Bank, in federal courts around the country. They alleged that now-convicted payday lender Scott Tucker colluded with several of his corporate entities to provide payday loans at illegal interest rates by claiming their business was owned and operated by Native American tribes.

The borrowers argued that since their loans were debited through the ACH electronic payment system, the participants in the ACH system, including our client, were part of a RICO (Racketeer Influenced and Corrupt Organizations act) conspiracy.

"In discovery, we were able to show that our clients had never communicated with the Tucker lenders, they didn't have a contract with the Tucker lenders, they were never paid by the Tucker lenders, and the Tucker lenders had never heard of First Premier Bank," said Maslon Partner Bryan Freeman. "So one of our main arguments to the court was you can't have a conspiracy or an agreement to engage in racketeering if you never communicate or have dealings with the racketeers."

The court agreed, and additionally found that the plaintiffs failed to prove First Premier had any knowledge of the illegal racketeering activity. The court granted Maslon's motion for summary judgment and dismissed the case, Moss v. First Premier.

Bryan Freeman led the team with substantial assistance from attorneys Jim Long and Judah Druck. Others team members included attorneys Erica Holzer, Jeremy Krahn, Nate Ajouri, Stephanie Laws, Anna Barton, Carly Johnson, Jevon Bindman, and Steve Schleicher, as well as paralegal Valerie Wolfe.

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