Bancorp Bank Sued for Alleged Damages Worth $150M
September 14, 2021, District of California – Plaintiff Cachet Financial Services fka Cachet Banq., Inc., a California corporation, the debtor and debtor in possession accuses Defendant The Bancorp Bank (“Bancorp”) with the allegations of breach of contract, negligence, indemnity, conversion, and disallowance of claims.
According to the complaint, Cachet was a national financial services company focused on processing automated clearing house transactions and providing related services to the payroll industry. Allegedly, Cachet and Bancorp entered into an agreement, that Bancorp “improperly and unilaterally” terminated without notice, resulting in “breach of contract”.
Cachet also alleges that Bancorp breached its duty by “improperly freezing and sweeping” Cachet’s accounts without notice, without statutory or contractual authority, and without allowing Cachet to find a sponsor bank to replace Bancorp. As claimed by Cachet, Bancorp’s “negligence and improper acts” caused it significant harm, due to which Cachet could not to conduct its business operations – culminating in a total loss of Cachet’s business and allegedly resulting in damages over $150,000,000.00.