Case Number: No. 3:12-cv-487
Case Status: Settled
Settlement Amount: $5.05 million
Court: United States District Court for the Western District of North Carolina
Berger Montague served as co-lead counsel and obtained a $5.05 million settlement and additional prospective relief in this consumer class action on behalf of all persons who were charged by Bank of America for lender-placed wind insurance that was not flat cancelled or fully refunded (in other words, who were charged net written premiums greater than zero), during the time period at issue.
The lawsuit alleged that Bank of America required certain borrowers to purchase lender-placed wind insurance at an inflated cost, and asserted claims for breach of contract and breach of the covenant of good faith and fair dealing, among other claims. Led by Shanon J. Carson of Berger Montague, the plaintiffs alleged that the defendants, when purchasing or providing lender-placed wind insurance policies, improperly backdated those policies, and that Bank of America unfairly profited from receiving commissions in connection with lender-placed wind insurance policies. The case was litigated in the United States District Court for the Western District of North Carolina and captioned Holmes, et al. v. Bank of America, N.A., et al., No. 12-cv-00487-MOC-DSC (W.D.N.C.).
The additional prospective relief obtained in the class action settlement included that: (1) Bank of America and its affiliates would not receive any commissions in connection with lender-placed wind insurance for a period of at least three years; and, (2) Bank of America would not purchase lender-placed wind insurance from an insurer affiliated with Bank of America for a period of at least three years.
If you believe that a provision of your mortgage contract has been breached and caused you harm, or that you are a victim of consumer fraud, please contact Berger Montague.
About Berger Montague
Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.