Lender Liability

Lenders and agents often find themselves caught in the crosshairs of litigation brought by their borrowers, co-lenders, subordinate lenders and other creditors. These claims often assert breaches of a loan agreement, intercreditor agreement, other loan document or an implied covenant of good faith and fair dealing. In other situations, lenders and agents may be sued for fraudulent transfers, economic duress, fraud and misrepresentation, tortious interference, or aiding and abetting fraud or breaches of fiduciary duty. And in bankruptcy cases, borrowers and other creditors might seek to equitably subordinate, recharacterize or disallow a lender’s claims.

King & Spalding’s lender liability litigators have extensive experience defending banks, private credit lenders, alternative capital and debt funds, private equity firms, and other parties in lender liability lawsuits. Our team is deeply knowledgeable about lender liability issues—often advising clients about risk mitigation and other strategies when they are negotiating with borrowers and other creditors. We have obtained dismissals and victories for clients in many significant lender liability matters in federal and state courts around the United States. And we have represented clients in many cutting-edge lender liability cases, including in connection with major bankruptcy cases.