A lot is riding on a federal lawsuit filed Tuesday in Manhattan's U.S. District Court. Three New York credit unions accused the city of New York and its Taxi and Limousine Commission of deliberately eviscerating the medallion taxicab industry.
More than 5,000 medallion loans worth $2.4 billion collectively managed by the $2 billion Melrose Credit Union in Briarwood, N.Y., the $676 million Progressive Credit Union in New York City and the $271 million LOMTO Federal Credit Union in Woodside, N.Y., are at stake.
Although the credit unions remain well capitalized, the growing popularity of app-based ride-sharing services, such as Uber and Lyft, have taken a toll on the cooperatives' bottom lines.
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