Cases & Deals

Financial institution obtains dismissal of Section 1981 putative class action challenging its ATM program

Client(s) Financial institution

Jones Day obtained dismissal, on behalf of a major financial institution, of a putative class action under 42 U.S.C. § 1981 ("Section 1981") that challenged an ATM network program giving participating financial institutions fee-free transactions for their customers. Plaintiffs claimed the program was discriminatory under Section 1981 and state law based on their allegation that the program included Minority Depository Institutions (MDIs).

The district court agreed with Jones Day's argument that the plaintiffs lacked standing under Article III of the U.S. Constitution because they did not (and could not) allege that the financial institutions where they bank were "able and ready" to join this program. Jones Day had also argued, in arguments the court did not need to reach in dismissing, that neither of plaintiffs' so-called "direct" nor "associational" discrimination theories stated an actionable claim for relief, and that the plaintiffs had not identified a legally enforceable contract.