Investors in subprime auto asset-backed securities (ABS) have had more than a decade to study the wave of litigation that followed the collapse of subprime residential mortgage-backed securities, assess the theories that generated billions in recoveries, and refine strategies in
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‘Pig Butchering’ Schemes Are an Emerging Risk for U.S. Financial Institutions
“Pig butchering” schemes, once considered a niche type of consumer fraud predominantly occurring overseas, have become a source of legal exposure for U.S. financial institutions that facilitate payments authorized by their customers but induced by a scam.
Recent lawsuits, including
Byteing Back: Investors May Recover in Alleged Massive “Pig Butchering” Scam
Following a sweeping crackdown, U.S. federal prosecutors have seized, and investors may recover, approximately $15 billion in bitcoin from what authorities describe as one of the largest cryptocurrency investment frauds ever uncovered — a sprawling “pig butchering” operation built on
Law360 | PrimaLend To Seek Ok for Ch. 11 Bidding in Market Test
PrimaLend’s Chapter 11 case is being closely watched as a key indicator of market confidence in the troubled subprime auto lending sector. The Texas-based lender gained court approval for bidding procedures last week as it attempts to sell its assets
Reuters Legal News | Bitcoin 2025: Volatility and the Rise of Private Litigation
Bitcoin’s 2025 price swings may not have been predicted, but they impacted market conduct in predictable ways. When asset prices decline, disputes over the allocation of losses often arise; conversely, during periods of rising asset prices, competition increases and the
Law 360 | Auto Lenders Shaken by Bankruptcy, Stirring Broader Worries
The bankruptcies of Tricolor and PrimaLend marked the first major insolvencies that the U.S. auto lending industry had seen in years. According to industry observers, they serve as a wake-up call for lenders that may have grown too comfortable with
Structured Credit Investor | Mass Deportations and Due Diligence Gaps Are Exposing Cracks in the US Consumer ABS Market
Deportation policies and due diligence blind spots are exposing hidden risks in the U.S. consumer ABS market.The market is facing a new kind of crisis — not of defaulting borrowers, but of disappearing ones. As mass deportations and tightening immigration
Fool Me Once, Fool Me Twice: What Yet Another Subprime Auto Bankruptcy Means
When a lender falls, it’s tempting to believe it is an isolated failure. When a second lender fails, it’s time to look for broader patterns of stress in corners of the market. For subprime auto and broader consumer lending, PrimaLend’s
Double Trouble in Tricolor: Risks in Collateral Misrepresentation
In a troubling development for the broader subprime auto and asset-backed securities markets, several auto loans tied to Tricolor Auto were found to contain duplicate vehicle identification numbers (VINs), suggesting that the same vehicles were pledged as collateral in more
SubPrime Auto Finance News | Experts From Davis+Gilbert and McDonald Hopkins Offer More Analysis of Tricolor Bankruptcy Impact
With the recent bankruptcy filing by Tricolor Holdings, many industry leaders are attempting to predict how this will impact subprime auto finance for the remainder of the year and beyond.Joseph Cioffi and Nicole Zatserkovniy, attorneys in the Bankruptcy,