CHICAGO, July 29, 2020 /PRNewswire/ — JPMorgan Chase gave preferential treatment to big business banking customers searching emergency loans throughout the Paycheck Protection Program (PPP) in the cost of smaller companies, based on a projected class-action lawsuit filed Wednesday that are the topic of a consolidation hearing now by a Joint Panel on Multistate Litigation.
Based on the lawsuit filed by Dallas-established Fears Nachawati Law Company on behalf of Illinois technology firm Ajira AI LLC, Chase and other banks participating in the Small Business Administration’s Paycheck Protection Program became crucial gatekeepers from the disbursement of almost $349 billion at pandemic-related monetary support for companies. The program awarded engaging banks using an origination fee based on a percentage of those value of every loan they processed.
Based on published reports, almost all of Chase’s private and business banking customers who employed a PPP loan obtained one, although only about 1 from 15 smaller companies that hunted loans was powerful. While small businesses fought to browse glitches at the Chase site, bigger companies received individualized personal attention, according to the suit. Chase finally granted $14 billion in loans – the most of any bank engaging in the PPP program.
“Small businesses such as Ajira AI deserved a reasonable opportunity for emergency financing to prevent layoffs and rescue their companies,” said Fears Nachawati trial attorney Matthew McCarley. “Rather, they had been victims of a two-tiered system that processed loans for customers .”
Ajira AI employed to get a $30,000 PPP loan via Chase on April 7. The business was advised on April 17 the funds were exhausted. The business later provided additional advice when financing was replenished, but that application was refused since bank agents erroneously rejected it for lacking documentation.
The lawsuit seeks compensation for negligence, fraudulent concealment, tortious interference and unfair and deceptive business practices. Since similar suits are registered on behalf of other tiny companies, Mr. McCarley said those suits must be merged so they are able to move through the courts efficiently for all parties.
The circumstance is Ajira AI LLC et al. v JPMorgan Chase Bank, Cause No. 20-CV-04428, at the U.S. District Court for the Northern District of Illinois. Along with Fears Nachawati, Ajira is represented by Chicago-established Khowaja Law Company.
Dallas-established Fears Nachawati Law Firm represents people and companies in cases involving water and environmental contamination litigation, public entities, private entities, mass torts, drug and medical device cases, wrongful death, and products liability. To learn more, see https://www.fnlawfirm.com.
SOURCE Fears Nachawati Law Company