Financial institution obtains dismissal of putative class action claims relating to alleged Ponzi scheme
Clients Financial institution
Jones Day successfully defended a financial institution in a putative class action asserting claims arising from an alleged Ponzi scheme. The plaintiffs made deposits in accounts held by our client for purposes of investing in a hedge fund that operated the alleged Ponzi scheme. After the scheme was uncovered, the plaintiffs asserted claims against our client for negligence, aiding and abetting breach of a fiduciary duty, violation of the Illinois Fiduciary Obligations Act, and unjust enrichment. Jones Day moved to dismiss on all counts, and the court ultimately dismissed the case with prejudice. Jones Day is currently defending the institution against the plaintiffs' appeal.