Click Fraud Protection United States Court of Appeals for the Ninth Circuit Upholds Sanctions Against Libre by Nexus - Tycko & Zavareei LLP
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United States Court of Appeals for the Ninth Circuit Upholds Sanctions Against Libre by Nexus

Date Published
Jun 08, 2024

June 7, 2024. The United States Court of Appeals for the Ninth Circuit affirmed a sanctions order against officers and principals of Libre by Nexus (LBN), a Shenandoah-based company involved in extracting payments totaling tens of thousands of dollars from indigent immigrants facing deportation in exchange for acting as the middleman to post bonds. While LBN agreed to settle claims for a class of immigrants victimized by LBN’s predatory practices, LBN and its principals have failed to pay monies owed or implement other agreed forms of important relief for class members. For these failures, the Northern District of California held LBN’s principals in contempt. This appellate court ruling solidifies previous contempt sanctions resulting from LBN’s attempt to escape the District Court’s orders and judgments requiring it to comply with the settlement.

Case Background

LBN has been embroiled in litigation across the country for several years due to numerous allegations of fraudulent activities that disproportionately affected Spanish-speaking immigrants. Clients often unknowingly signed contracts they could not fully understand and were subsequently required to pay $420 per month for years for GPS ankle monitors, as well as other expensive fees and charges, while awaiting their immigration hearings.

After LBN and its principals failed to provide the promised relief to victimized immigrants, the Northern District of California entered contempt sanctions. The sanctions included daily fines for each day that LBN fails to comply with the settlement, as well as attorneys’ fees for the significant time the Plaintiffs’ attorneys spent trying to coerce LBN to live up to its agreement.

The Ninth Circuit upheld the sanctions order, making only one technical correction to the judgment and leaving the sanctions remedies implemented by the District Court undisturbed.

Impact of the Ruling

“We are pleased that the Ninth Circuit put a stop to LBN’s and its principals’ latest delay tactic after years of flagrantly violating the settlement agreement and the District Court’s orders,” said Glenn Chappell, Chair of TZ’s Appellate Practice Group, representing the plaintiffs-appellees.

This appellate decision is a critical step in holding LBN and its principals accountable for their fraudulent practices and failure to pay monies owed under a judgment in the Northern District of California.

The case is Juan Quintanilla Vasquez; et al., v. Libre by Nexus, Inc., No. 23-15278 in the United States Court of Appeals for the Ninth Circuit.

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