Jacobs P.C. Files $106 Million Lender Liability Action Against Shanghai Commercial Bank Ltd.

New York, NY (December 4, 2024) – Jacobs P.C., a boutique business litigation law firm, has filed a lender liability complaint on behalf of the Chen family and their entities, seeking to recover $106 million in damages from Shanghai Commercial Bank Ltd., New York Branch, and Shanghai Commercial & Savings Bank Ltd. The lawsuit alleges fraud, breach of contract, breach of fiduciary duty, economic duress, tortious interference with contract, and additional claims stemming from the banks' handling of loans tied to a development project and personal property of the Chen family.

The complaint outlines allegations that the banks coerced the Chen family into mortgaging a second property, which serves as both their family home and a cultural center, and mismanaged construction loans by withholding agreed-upon funds, forcing the family to cover expenses and endure project delays. Furthermore, the banks pressured the Chens to engage related parties as contractors and mezzanine lenders, imposed exorbitant fees, and demanded reimbursement for unreasonable legal costs during loan extensions.

These practices, the lawsuit asserts, resulted in the loss of the Chen family’s investment in the development project and put both properties at risk of foreclosure.

“The Chen family’s case underscores the devastating effects of unlawful lending practices, and we are committed to holding the banks accountable for their actions,” said Leo Jacobs, Founder of Jacobs P.C. “This lawsuit is not only about seeking justice for the Chens but also about sending a clear message that such practices will not go unchecked.”

Jacobs P.C. remains steadfast in its commitment to advocating for clients facing complex financial and legal challenges, ensuring their rights are protected and their voices are heard.

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