The investment firm asserts that it is entitled to the return of these loans, along with their proceeds and associated documents, under the terms of the MLSA. However, Western Alliance currently holds the loan files and is allegedly refusing to return them, fueling the ongoing dispute.
Western Alliance’s Defense: Routine Banking Practices
Western Alliance Bank is seeking the dismissal of the lawsuit, arguing that the transaction was a legitimate sale under the terms of the MLSA, which did not prohibit the transfer or pledging of the loans. The bank maintains that it simply engaged in standard banking practices to protect its interests as a secured creditor, and that its actions should not be construed as part of any racketeering conspiracy.
In its dismissal motion, the bank asserts that AHP is attempting to “escape the clear language of the agreement” it signed. Western Alliance contends that the MLSA allowed Cymbidium and its affiliates to transfer or pledge the loans without restrictions, as long as they adhered to the terms of the repurchase clause. The bank argues that the lawsuit is based on speculative allegations, not facts, and does not establish any actual fraud or illegal activity.
Bank Claims Lawsuit Is “Sensationalized”
According to the bank, the claims under the Racketeer Influenced and Corrupt Organizations Act (RICO) are unfounded, as there is no evidence that Western Alliance participated in a fraudulent scheme. The bank further argues that AHP’s allegations are vague and do not plausibly suggest any violation of law.
