Bank Accuses Legal Vendor Epiq of Ditching Bankruptcy Trustee Deal
MUFG Union Bank said it has suffered millions in damages as a result of Epiq's sale of its Chapter 7 bankruptcy software unit to another bank.
April 29, 2019 at 05:10 PM
2 minute read
A bank that worked with Epiq Systems to promote services to Chapter 7 bankruptcy trustees has sued the legal vendor, claiming the company violated a contract by selling its bankruptcy software unit to a competitor that pushed trustees to switch banks.
In its lawsuit Friday, MUFG Union Bank said more than $150 million of bankruptcy trustee assets have left its vaults since Epiq sold its Chapter 7 software unit to Axos Bank last year. That transaction violated the joint services agreement Epiq signed with the bank, MUFG Union Bank argued. The bank has also named Axos as a defendant, claiming it is liable for interfering with the contract. It argues Axos' client-poaching efforts are speeding up.
“Over the past week (if not longer), Axos Bank has been contacting Union Bank's chapter 7 trustee clients and notifying them that they have 30 days to move their deposits from Union Bank to Axos Bank,” the complaint said. “Axos Bank has been misinforming these customers that Union Bank's relationship manager is going to retire and that the customers will therefore not receive the same support from Union Bank they have previously received.”
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
- 1Wine, Dine and Grind (Through the Weekend): Summer Associates Thirst For Experience in 'Real Matters'
- 2The Law Firm Disrupted: For Big Law Names, Shorter is Sweeter
- 3The 'Biden Effect' on Senior Attorneys: Should I Stay or Should I Go?
- 4BD Settles Thousands of Bard Hernia Mesh Lawsuits
- 5'You Are Not Alone': 120 Sex Assault Victims Plan to Sue Sean 'Diddy' Combs
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250