CashCall Defeats CFPB’s Claim for Nearly $300 Million

Skadden obtained a significant victory on behalf of client CashCall and its owner in a case brought by the Consumer Financial Protection Bureau (CFPB). In August 2016, summary judgment was granted to the CFPB on liability and our clients faced potential damages of nearly $300 million. However, following a bench trial on damages, Judge John Walter of the U.S. District Court for the Central District of California rejected the CFPB’s demand for $235 million in restitution, holding that the CFPB failed to prove that any restitution was appropriate, and awarding no restitution. The court also rejected the CFPB’s demand for a penalty of $51 million and issued an order for the statutory minimum amount of $10 million. Finally, the court rejected the CFPB’s demand that the defendants be permanently banned from the lending industry, holding that no injunctive relief was warranted.