Investors get OK for class action against Umpqua Bank over customer’s Ponzi scheme – By Jeff Manning (The Oregonian/OregonLive) / Dec 19, 2022
Investors who claim Umpqua Bank aided and abetted a $300 million Ponzi scheme perpetrated by one of its northern California borrowers have won a key legal battle.
U.S. District Judge Richard Seeborg in San Francisco denied the bank’s motion for summary judgment, which keeps the case alive. He also certified the case as a class action, which increases the number of plaintiffs and potential damages.
Linda Lam, the Oakland attorney leading the plaintiff’s case, said a trial is expected get underway in 2023.
With nearly $30 billion in assets, Umpqua is the largest bank headquartered in Oregon. It has grown swiftly over the years through a rapid-fire series of acquisitions.
