Rosebud Lending, along with other affiliated lenders, has been accused of violating federal racketeering laws by issuing loans with exorbitantly high interest rates, often exceeding 500%.
The class action lawsuit was filed by plaintiffs Joseph Morgan and David Johnson, each a resident of Cook County, on behalf of themselves and other class members in Chicago federal court on Feb. 5.
The defendants in the case include Rosebud Lending LZO, which is also known as ZocaLoans; 777 Partners LLC; Tactical Marketing Partners LLC; F3EA Capital LLC; F3EA Servicing LLC; F3EA Holdings LLC; and John Does 1-10.
The plaintiffs argue that these loans are predatory and unlawful and seek a declaratory judgment to void them. They also request an injunction against their collection.
The lawsuit seeks damages under the Illinois Interest Act, the Illinois Predatory Loan Prevention Act, and the Illinois Consumer Fraud Act. Additionally, it seeks treble damages under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act.
The court filing indicates that this lawsuit involves more than 100 class members and that the aggregate amount in controversy exceeds $5 million.
Plaintiffs are represented by attorneys Daniel A. Edelman, Tara L. Goodwin and Dulijaza (Julie) Clark, of the firm of Edelman Combs Latturner & Goodwin, of Chicago.