Case Explained: TURREY, ET AL. V. VERVENT, INC., ET AL.

Court: United States Court of Appeals for the Ninth Circuit Filed: 2026-08-12 Docket: 3:20-cv-00697- The Ninth Circuit affirmed the district court’s judgment in favor of plaintiffs following a jury trial on Racketeer Influenced and Corrupt Organizations Act (RICO) claims against student loan servicers. The court held that there was sufficient evidence for the jury to find that the plaintiff borrowers neither knew, nor reasonably should have known, of their fraud-based injuries more than four years before filing suit in April 2020, thereby satisfying RICO’s four-year statute of limitations under the “injury discovery” rule. The court reasoned that ordinary student borrowers were not placed on inquiry notice by prior government investigations into ITT Educational Services or irregularities in loan documents, as these did not reveal the concealed fraudulent nature of the loans to unsophisticated consumers; rather, the clock began to run only after ITT’s high-profile collapse and bankruptcy in September 2016. Additionally, the court ruled that defendants failed to preserve their challenge regarding proximate causation for appellate review because the district court’s denial of summary judgment on that ground turned on disputed factual issues, and the defendants did not renew the specific challenge in their post-trial motions for judgment as a matter of law under Federal Rule of Civil Procedure 50. As a result, the twelve-million-dollar jury verdict stands, and the case is remanded to enforce the judgment. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.