McLean, Virginia — Capital One has requested a federal court to dismiss a lawsuit brought by the Trump Organization, arguing that the claims lack any supporting evidence. The bank characterized the allegations of political bias in the closure of accounts as “false,” stating that it closes accounts only for legally permissible reasons and asserting that the plaintiffs failed to prove otherwise.
The Trump Organization, based in Palm Beach County, Florida, filed the lawsuit in March, claiming that Capital One improperly closed approximately 300 accounts due to political and social motivations, referring to a so-called “woke” agenda. Capital One contended in its motion to dismiss, filed Wednesday, that the organization’s complaint does not adequately connect the allegations to relevant consumer protection laws in Florida or other states.
Initially filed in Miami-Dade Circuit Court, the case was later moved to the U.S. District Court for the Southern District of Florida in April. The bank maintained that its reasoning for closing accounts complied with legal standards, emphasizing that the Trump Organization has not provided factual evidence substantiating its claims.
In the allegations, Eric Trump and the organization contend that their accounts were closed as a direct result of former President Trump’s political stance. Notably, the complaint does not reference the January 6, 2021, U.S. Capitol riot, despite the account closures occurring shortly after that incident.
Capital One countered that the lawsuit relies on speculative claims lacking specific evidence. The bank pointed to the absence of any substantive facts that would establish a connection between the account closures and the alleged political motivations cited by the plaintiffs.
The contract governing the accounts allows Capital One significant discretion to close accounts without prior notice. In March 2021, the bank notified the Trump Organization that it would terminate some of its deposit accounts, while also offering an extension for certain accounts at the company’s request.
As of October 2021, the Trump Organization had closed or relocated all of its accounts with Capital One. The bank noted that the lawsuit was filed nearly four years after the initial closure communication, during which it had not engaged with the plaintiffs.
In its motion, Capital One asserted that the lack of an ongoing dispute undermines the lawsuit’s validity. The bank dismissed the Trump Organization’s claims as vague and unsupported, stating that the lawsuit encompasses allegations that are disconnected from any actual harm experienced by the plaintiffs.
Todd Baker, a senior fellow at Columbia University’s Richman Center for Business, Law and Public Policy, has indicated that the lawsuit appears to be weak and should be dismissed if Capital One chooses to challenge it legally.
A representative for the Trump Organization did not respond to a request for comment regarding the situation. This controversy over banking practices was previously highlighted by Trump, who criticized major financial institutions for allegedly targeting conservative individuals during a virtual event at the World Economic Forum in Davos, Switzerland.
In response, Bank of America CEO Brian Moynihan and JPMorgan Chase CEO Jamie Dimon both emphasized that their banks do not refuse service based on political affiliation. Moynihan attributed concerns about so-called “de-banking” to over-regulation rather than any corporate policies.
Lawmakers have increasingly focused on the issue, introducing legislation aimed at addressing concerns about the treatment of customers based on political beliefs. Regulatory bodies such as the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have pledged to move away from considering banks’ reputational risks during oversight.
Since the filing of the Trump Organization’s lawsuit, Capital One has successfully obtained regulatory approvals from the Federal Reserve and the OCC for its $35.3 billion acquisition of Discover.
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