We represented a National Bank in a collective action filed against it on behalf of 54 investors who claim losses in excess of $10M resulting from the collapse of a Ponzi scheme operated by Wesley Rhodes, a former investment advisor. Plaintiffs allege National Bank is secondarily liable, as a result of having materially aided or participated in Rhodes’s violations of the antifraud and registration provisions of the Oregon Securities Laws. After the case was filed, it was removed to federal court, where we successfully obtained its dismissal pursuant to the Securities Litigation Uniform Standards Act. The plaintiffs then filed individual actions in Oregon state court, naming the National Bank as a defendant in 28 of the cases.
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