American Banker
August 11, 2022

MoneyGram Accuses CFPB of 'Venue Shopping' in Lawsuit (American Banker)


When the Consumer Financial Protection Bureau sued MoneyGram International in April, the lawsuit was filed in New York because New York Attorney General Letitia James joined the lawsuit alleging repeat violations of remittance rules. But MoneyGram, which is headquartered in Dallas, is now asking a New York judge to transfer the case to Texas. "Generally speaking, the CFPB always sues where the company is located," said Tom Hefferon, a Financial Industry Litigation partner at Goodwin. "Fundamentally, cases tend to end up in the place where the witnesses are located." Some have suggested that the CFPB is seeking to avoid litigating in Texas because judges on the Fifth Circuit Court of Appeals have ruled against the bureau on several important issues. "There is a legitimate reason that it makes sense for a New York attorney general to be allowed to sue in New York," Hefferon said. "But on the flip side, that could be an excuse because the CFPB might prefer to litigate in the Second Circuit versus the Fifth Circuit." Read the American Banker article here.