Press Release May 27, 2014

Goodwin Procter Wins Dismissal for Clients in California Money Transmission Act Lawsuit

Goodwin Procter litigators recently won the dismissal of a high-profile lawsuit brought by Think Computer Corporation against its clients Group Limited and certain investment funds. Airbnb, Facebook, and other technology companies and their investors were also defendants.

The lawsuit alleged that the technology company defendants named in the complaint violated the California Money Transmission Act and other state and federal laws by not obtaining licenses as money services businesses, or MSBs, and that the investor defendants facilitated these alleged violations. Goodwin, along with a joint defense group, argued that the case should be dismissed because the court lacked jurisdiction and that defendants had violated neither federal nor state law relating to the operation of MSBs. The Court agreed with defendants and dismissed the case without leave to amend.

The Goodwin team representing the firm’s clients included Silicon Valley partner Michael Jones and Washington associate Kyle Tayman.