Legal News

Shuttered New Jersey Law Firm Sues Wells Fargo
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

2011-11-22_Wells_Fargo_ATMs_lit_at_night

Summary: In a new lawsuit, a robo-signing law firm blames Wells Fargo for its financial woes. 

A now defunct law firm is suing Wells Fargo for its collapse. Zucker, Goldberg & Ackerman helped the notoriously shady bank foreclose on thousands of mortgages, but the bank allegedly delayed paying for service, which resulted in the firm’s demise.

  
What
Where


New Jersey’s Zucker, Goldberg & Ackerman was known for its “robo-signing,” a term used for automated document creation. According to the Wall Street Journal, it was one of several high-volume firms that had bank clients; and after consumer advocates and the government called for mortgage industry changes, the robo-signing law firms suffered.

In its lawsuit, the firm said that after the regulations, lenders unfairly passed the responsibility of enforcement onto firms.

“Because foreclosure law is significantly impacted by economic conditions, government regulations and the condition of the lending industry, it has always been difficult for [the law firm] to control its own destiny,” Zucker, Goldberg & Ackerman said.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




According to the lawsuit, Wells Fargo hired Zucker, Goldberg & Ackerman to file court pleadings, ensure compliance, and research information about individual foreclosure cases. The two parties also agreed that the firm would advance any foreclosure-related expenses and Wells Fargo would later reimburse them.

In 2010, the New Jersey Supreme Court cracked down on robo-signing. It called for banks to show that they were properly submitting details before they could foreclose on houses, and those details included internal policies. Zucker, Goldberg & Ackerman said that Wells Fargo delayed responding to court orders so the law firm advanced a large sum of their own money, which ruined them financially.



The law firm said that Wells Fargo also stiffed them on $2.5 million in work fees.

Wells Fargo has responded to the suit, saying that it “should not be viewed as credible.” It denied owing $2.5 million.

The firm laid off the majority of its 335 lawyers last year, and it filed for bankruptcy on Aug. 3, 2015. The firm is represented by attorney Daniel M. Stolz, who is fighting to pay back the firms’ $30 million debt.

U.S. bankruptcy judge Christine Gravelle has set a hearing for this case for December 21.

Source: The Wall Street Journal

Photo courtesy of Wikimedia



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Litigation Attorney with 5-7 years of civil tort experience

USA-TX-Dallas

Dallas office of our client seeks litigation attorney with 5-7 years of civil tort experience, inclu...

Apply Now

RELEVANT JOBS

Litigation Associate (Junior to Mid-Level) - Medical Malpractice - Garden City, NY

USA-NY-Garden City

Defense firm seeking junior to mid-level associate for Garden City office to fill Medical Malpractic...

Apply now

Experienced Insurance Defense Attorney Needed

USA-NY-Bohemia

Insurance Defense firm (with 15 attorneys in Suffolk and Mineola location), seeks attorneys with 5+ ...

Apply now

CIVIL LITIGATION ATTORNEY - Employment

USA-CA-Fresno

Lang, Richert & Patch a Fresno area AV-rated law firm located in the highly desirable Fig Garden Fin...

Apply now

ASSOCIATE ATTORNEY

USA-TX-Houston

INSURANCE DEFENSE / TRANSPORTATION LITIGATION Law firm located in North Houston seeking an associ...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top