On September 23, 2021, Jonathan Pompan was quoted in Bloomberg Law regarding how the Consumer Financial Protection Bureau, arguing before the Ninth Circuit, will try to break a string of high-profile court decisions limiting federal power to recoup ill-gotten gains from fraudsters in civil cases.
The CFPB faces a daunting task in arguing that the U.S. Supreme Court’s June 2020 decision in Liu v. Securities and Exchange Commission—and a more recent Seventh Circuit ruling (CFPB v. Consumer First Legal)—shouldn’t restrict the bureau’s ability to get redress for consumers.
The Seventh Circuit’s decision in Consumer First Legal is likely to provide a path forward for the Ninth Circuit, said Pompan.
A CFPB loss at the Ninth Circuit could further embolden companies looking to fight a CFPB enforcement action, he said.
“Companies with their backs against the wall that only have one source of revenue that’s under attack could possibly have greater leverage when litigating,” Pompan said.
Here is a link to the article.