Glenn Thames and Bobby Sterken recently won dismissal of a putative class action suit filed against one of the firm’s banking clients. The suit was based on a series of real estate projects financed by the bank. Investors in some of the projects filed suit against the developer with whom they had invested, the bank that provided financing, and several other parties connected to the projects.
Representing the obvious target defendant, Glenn and Bobby filed a motion to dismiss the suit on several grounds. Additionally, Glenn started non-judicial foreclosure proceedings against one of the properties in question. The investors sought a temporary injunction to block the foreclosure, which Glenn opposed on behalf of the bank. First, one judge denied the injunction and allowed the bank to foreclose. Then, Judge Kincaid of the Northern District of Texas, who was presiding over the putative class action, granted the motion to dismiss. Although the plaintiffs were given an opportunity to re-file the suit, they instead chose to abandon their class action allegations and pursue individual claims in a different court. In response, Glenn and Bobby again moved to dismiss and asserted affirmative claims against the investors on behalf of the bank. This time, Judge Jeremy Kernodle of the Eastern District of Texas granted the bank’s motion to dismiss. Thereafter, the remainder of the suit was quickly dismissed by agreement.