TLDR:
- Three class actions filed against Evolve, AMG, Lineage, and American Bank in Colorado.
- Lawsuits argue partner banks’ inability to track and provide access to funds shows risk management failure.
- Evolve and Lineage recently faced regulatory actions, with Evolve’s issues dating back to 2023.
- Allegations include negligence, unjust enrichment, conversion, and breach of fiduciary duty, seeking restitution and damages.
- Suits may hinder cooperation between banks and block requests for records in bankruptcy case.
BREAKING: The Synapse disaster seems to be moving to the next phase — sue everybody:
At least three putative class actions against Evolve, AMG, Lineage & American Bank were filed in US District Court in Colorado late last week.
The suits make largely similar arguments,… pic.twitter.com/PfU8k8fJ0j
— Jason Mikula (@mikulaja) November 26, 2024
The Synapse disaster is escalating rapidly. These lawsuits are exposing significant financial mismanagement and could severely disrupt the operations of the involved banks. As they face mounting legal pressure, the broader implications for regulatory oversight and industry practices loom large, with the potential to delay or derail critical investigations.
Sources:
https://www.classaction.org/synapse-fintech-bankruptcy-lawsuits
https://www.justice4you.com/blog/notice-from-evolve-bank-trust-regarding-synapse-financial