Cases & Deals

CFG defends against class actions over alleged pyramid scheme

Client(s) Citizens Financial Group, Inc.

Jones Day is defending Citizens Financial Group, Inc. (CFG) in a series of class actions filed after the collapse of Telexfree, LLC, which is alleged to have conducted the second largest pyramid scheme in U.S. history. Several class action suits have been filed against third party businesses, including CFG, alleging that those third parties aided and abetted the Telexfree fraud, deepened the company's insolvency and otherwise harmed the plaintiffs by providing ordinary banking services to the Telexfree entities. The class actions are currently pending in both bankruptcy and district courts spanning four states.