Munger Tolles Secures Dismissal of $900M Fraud Class Action

Munger, Tolles & Olson represented Cozen O’Connor in obtaining dismissal on July 14, 2017 of a $900 million class action brought against it and its client Full Tilt Poker on behalf of players alleging fraud and violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act.

After being accused of running a $440 million Ponzi scheme by the U.S. Department of Justice, Full Tilt Poker was sued in 2011 by the plaintiff, who alleged the company had illegally deducted money from her online gaming account. Munger Tolles’ client Cozen O’Connor was brought into the lawsuit, as the plaintiff alleged Full Tilt Poker used the skimmed funds to pay the law firm’s fees. The plaintiff also alleged violations of the California Legal Remedies Act and California Business and Professions Code.

Judge George H. Wu of the U.S. District Court for the Central District of California issued a dismissal of the claims, contending that the plaintiff did not provide an adequate link between the alleged RICO violations and the injuries of the proposed class members.

The Munger Tolles team representing Cozen O’Connor included Melinda E. LeMoine and Jennifer L. Bryant.