Agents Hit CARES Act PPP Lenders With Class Action, Demanding $4 Million in Fees

LOS ANGELES — Intermediaries who aided small businesses in filing applications for loans under the CARES Act Paycheck Protection Program have filed a class action against Citigroup Inc, JPMorgan Chase Bank and Wells Fargo, and other banking giants, accusing them of reneging on their promise to pay nearly $4 million in agent fees.

In an April 27 complaint filed in the U.S. District Court for the Central District of California, the plaintiffs, represented in part by Los Angeles attorney Mark Geragos, say the banks received approval from the Small Business Association and funded loans for numerous businesses, yet failed …