Tag Archives: Bank

In Deciding Tortious Aiding and Abetting Claims, MA Federal Court Finds Routine Provision of Banking Services May Amount to Substantial Assistance When a Strong Inference of Actual Knowledge Exists

On August 31, 2022, in a lengthy order,[1] Judge Timothy Hillman of the U.S. District Court of Massachusetts denied motions to dismiss that were filed by multiple defendant banks (the “Banks”) in an attempt to avoid liability for allegedly aiding and abetting a multibillion-dollar Ponzi scheme by TelexFree. While the Banks raised a variety of issues, the judge’s rulings regarding the “substantial assistance” element of a tortious aiding and abetting claim is particularly noteworthy.… More