Bank of America has successfully secured the dismissal of a lawsuit accusing the institution of discriminatory practices against Iranians after a case brought by Farshad Abdollah-Nia alleging 15,000 Iranians had been discriminated against.
Federal Judge Cynthia Bashant ruled on Tuesday that the bank did not violate US civil rights law by freezing and closing the accounts of Abdollah-Nia, a postdoctoral fellow in San Diego with permanent-resident status, nor the accounts of thousands of others.
Bank of America defended its actions by arguing that Nia failed to provide sufficient documentation to prove residency outside of Iran, a necessary step to comply with complex US sanctions regulations.
It argued that the US Treasury is “very unforgiving of banks whose deficient sanctions compliance programs lead to violations.”
Judge Cynthia Bashant rejected class-action status for the suit, stating that the bank acted within its rights in freezing and subsequently closing Nia’s account in 2019.
The lawsuit, which sought class-action status, alleged that Bank of America had unfairly restricted or closed the accounts of up to 15,000 Iranian Americans.
Furthermore, the judge ruled that Bank of America did not violate California laws, although she permitted Nia to pursue a claim under the US Equal Credit Opportunity Act regarding notification of the account closure.
While denying Nia’s motion to certify the case as a class action on discrimination grounds, Judge Bashant provided him with the opportunity to refile within 30 days if he chooses to pursue the matter solely on the grounds of ECOA notification.
Both the attorney representing Nia and a spokesman for Bank of America declined to comment on the ruling.
