Wells Fargo Prevails in Navajo Nation Fraud Suit

Munger, Tolles & Olson represented Wells Fargo in obtaining dismissal of claims brought by the Navajo Nation alleging the bank targeted members of the tribe to open bank accounts without customer consent.

In a Sept. 25, 2018 order, Senior Judge James A. Parker of the U.S. District Court for the District of New Mexico agree with Wells Fargo that certain of the Nation’s claims were precluded by a consent order issued by the Consumer Financial Protection Bureau in 2016. Finding that the Nation “had a full and fair opportunity to litigate” those claims in the CFPB proceeding, they are “barred by res judicata and will be dismissed.” The court found that the Nation lacked standing to assert its other federal law claims and dismissed the state and tribal law claims for lack of federal jurisdiction.

The Munger, Tolles & Olson attorney team included David H. Fry, Erin J. Cox, Samuel H. Allen and Susan S. Har.