In re Peregrine Financial Group Customer Litigation

Berger Montague served as class counsel and obtained settlements worth over $55.5 million on behalf of former customers of Peregrine Financial Group, Inc. in litigation against U.S. Bank, N.A. and JPMorgan Chase Bank, N.A., arising from Peregrine’s collapse. The plaintiffs alleged that both banks breached legal duties by allowing Peregrine’s owner to withdraw and put millions of dollars in customer funds to non-customer use. Led by Michael Dell’Angelo of Berger Montague, the case was litigated in the United States District Court for the Northern District of Illinois and captioned In re: Peregrine Financial Group Customer Litigation, No. 1:12-cv-5546 (N.D. Ill.).

Peregrine was the nation’s second-largest non-bank, non-clearing futures commission merchant. Under federal law, Peregrine was required to keep any customer funds in specially-designated accounts separate from the company’s general operations funds. For many years, the company accepted funds from thousands of customers, processed trades, and gave the appearance that it was complying with federal law.

Peregrine’s former owner, Russell Wasendorf Sr., attempted suicide in the parking lot of the company’s Iowa offices and left a note admitting that he had stolen millions of dollars in customer funds over the course of two decades. Peregrine quickly declared bankruptcy and the Commodity Futures Trading Commission froze all customer accounts. In the aftermath, customers learned that approximately $200 million was missing.

If you are an investor and have questions about a potential securities fraud lawsuit, 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.