Langer Grogan & Diver, P.C. announced today that Magistrate Judge Timothy Rice of the United States District Court for the Eastern District of Pennsylvania granted preliminary approval to a $37.5 million class action settlement with Zions First National Bank and two subsidiaries of claims brought under the Racketeer Influenced and Corrupt Organization (“RICO”) Act.
The case alleged that the defendants provided payment processing services to allegedly fraudulent telemarketing and web marketing companies. Over 500,000 consumers’ accounts were alleged to have been debited on behalf of the fraudulent entities.
The plaintiff’s claims and supporting facts were the subject of a detailed opinion issued by the United States Court of Appeals for the Third Circuit in September 2015. The Third Circuit’s docket includes friend of court briefs filed in support of plaintiff’s position by, among others, the AARP, the Consumer Federation of America, the National Consumer Law Center, and Senators Bob Casey of Pennsylvania, Richard Blumenthal of Connecticut, and Ed Markey of Massachusetts.
The case is Reyes v. Zions First National Bank., 10-cv-0345, in the U.S. District Court for the Eastern District of Pennsylvania. A final approval hearing on the settlement has been set for November 21, 2016.
The class is represented by Howard Langer, John Grogan, Peter Leckman, Ned Diver, and Irv Ackelsberg.