Co-leader of Financial Services Litigation group quoted in National Law Journal
Financial Services Litigation practice group co-leader and Virginia Beach partner John Lynch was quoted in a January 29 National Law Journal article about the U.S. Court of Appeals for the D.C. Circuit ruling at the end of January that three recess appointments to the National Labor Relations Board were invalid, potentially dealing a devastating blow to the Consumer Financial Protection Bureau (CFPB).
Although bureau director Cordray was not named in the suit, his recess appointment to the CFPB was made on the same day and under the same assertion of executive power, and the regulatory bar assumes that it, too, will fail to survive judicial review. But despite the uncertainty over Cordray’s appointment and whether in the short-term it will make a difference for companies facing agency subpoenas, known as civil investigative demands, or other enforcement actions, remains to be seen.
“If you have a [civil investigative demand] against you right now, you probably have more negotiation leverage,” Lynch said. “There is some uncertainty, but the question is, what is the value of that uncertainty at the negotiation table?”