Benson

Plaintiffs, a group of investors defrauded by the “Millennium Ponzi scheme,” seek recourse against JPMorgan Chase Bank N.A. (“JPMorgan”). They allege that Washington Mutual, Inc. (‘WaMu”) aided and abetted the Ponzi scheme by providing banking services to several companies controlled by the scheme’s principals despite actual knowledge of the fraud. JPMorgan, they argue, is liable as successor in interest of WaMu, having purchased most of WaMu’s assets and liabilities from the Federal Deposit Insurance Corporation (“FDIC”). The FDIC had taken WaMu into receivership pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Pub.L. No. 101-73, 103 Stat. 183 (“FIRREA”). Plaintiffs further claim JPMorgan is liable because it continued WaMu’s problematic practices following assumption.

The district court dismissed plaintiffs’ complaints for failure to exhaust FIR-REA’s administrative remedies. See 12 U.S.C. § 1821 (d)(13)(D)(ii) (barring “any claim relating to any act or omission of [a failed bank] or the [FDIC] as receiver” unless such claim is first presented to the FDIC). Plaintiffs contend, however, that FIRREA’s jurisdictional bar is limited to…