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An Ohio federal judge dismissed an antitrust lawsuit brought by members of the $157 million Emery Federal Credit Union in Cincinnati.
In his 27-page order and opinion issued last month, U.S. District Judge Douglas R. Cole wrote, in part, that they (members) "failed to plead sufficient facts establishing they diligently attempted to uncover Emery's supposed fraud." He also ruled that the members lacked standing to pursue their claims regarding the Sherman Act and Racketeer Influence and Corrupt Organizations Act.
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In May 2019, five members who live in Maryland and Delaware filed a lawsuit claiming Emery violated the Sherman Act's antitrust laws because it allegedly conspired with All Star Title Inc. in Baltimore to fix the price of title and settlement services charged to borrowers on refinances, reverse mortgages and other mortgage loans.
The members also claimed they were charged and paid supracompetitive prices for title and settlement services and that they suffered damages that ranged from $50 to $1,600, which allegedly represented the kickback overcharges from the alleged price fixing and minimum fee agreements, affecting more than 1,700 loans over two and a half years.
"There is no legal merit to this complaint," Michael Y. Kieval, a Washington, D.C.-based attorney representing the credit union, wrote in reaction to Judge Cole's dismissal. "From the beginning, it has been important to look beyond the inflammatory, dramatic and provocative language used in this complaint — which was meant to mischaracterize and mislead — and examine the actual allegations. We are gratified that the Court's opinion recognized that the rhetoric in the complaint was not supported by actual facts, and dismissed all claims without prejudice."
Because the judge dismissed the lawsuit without prejudice, it means the plaintiffs have 28 days or until mid-June to refile a new complaint.
Melissa Schaub Matthews, who is listed as the Cincinnati-based lead attorney representing the members, did not respond to CU Times' request for comment.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
