Profiles, Inc. v. Bank of America Corporation — U.S. District Court, D. Md.

Case summary

Profiles, Inc., on behalf of itself and all others similarly situated, filed this class action on April 3, 2020 in the U.S. District Court for the District of Maryland, No. 1:20-cv-00894-SAG, against Bank of America Corporation and Bank of America, N.A. The complaint pleads violations of the CARES Act and of the Small Business Administration's 7(a) loan program, 15 U.S.C. § 636(a), and seeks a declaratory judgment and a preliminary and permanent injunction. On April 13, 2020 the court denied the plaintiffs' motion for a temporary restraining order and preliminary injunction, after a telephonic hearing held April 10. The plaintiffs noted an interlocutory appeal to the Fourth Circuit and sought an emergency stay pending appeal; the court denied that motion on April 17, 2020.

Case at a glance

What does the complaint allege?

That the defendants implemented a loan process that prioritised their existing borrowing clients and barred their depository clients and other small businesses from applying, and that nothing in the CARES Act authorizes a lender to choose who gains access to the federally backed lending program. These are the complaint's allegations.

What did the court decide on the injunction?

It denied the motion. The opinion of April 13, 2020 records that the CARES Act does not expressly provide a private right of action, so the plaintiffs had to show an implied one, and holds that they had not met their burden to show that the balance of the equities and the public interest entitled them to even the temporary relief sought.

Why was the stay denied?

Because, the opinion of April 17, 2020 states, the motion did not seek a stay as courts use the term: it asked the court to impose an affirmative obligation on the bank rather than to preserve the status quo, which since April 4, 2020 had been the bank's participation in the program under its amended policy.

Summary written from the documents on this page; every sentence is sourced.