Federal court stamps final approval for American Eagle Mortgage investors’ settlement with law firm

On July 15, 2024, U.S. Judge Hernández issued final approval of a key settlement for a class of Oregon investors represented by Larkins Vacura Kayser in Diane Anderson et al. v. Davis Wright Tremaine et al., No. 3:20-cv-01194-AR (U.S. District Court, Oregon).

Larkins Vacura Kayser attorneys Christopher J. Kayser and John Rake, in conjunction with Esler, Stephens & Buckley attorneys Michael Esler and John Stephens, were appointed class counsel for a class of Oregon investors in real estate securities promoted and managed by American Equities, American Eagle Mortgage Management, Ross Miles, and Maureen Wile. The American Equities operation functioned as a Ponzi scheme, using new investments to pay earlier investors and hide losses.  Seven investors represented by Larkins Vacura Kayser and Esler, Stephens & Buckley brought Oregon Securities Law claims against nonsellers who, investors claimed, participated in and materially aided securities violations.

Magistrate Judge Armistead previously recommended approval of a settlement agreement under which defendant Davis Wright Tremaine will pay $4.5 million to investors. Davis Wright Tremaine, which was counsel to American Equities, drafted legal documents related to the securities sales, which investors say increased the credibility of the opportunity. Judge Hernández just issued a final approval order earlier this week, paving the way for significant payments to Oregon investors.

More information on the settlement may be found at ABAJournal, Reuters, and Bloomberg Law.