A New York federal judge has agreed to finalize judgment against the CFPB on the basis that the agency is unconstitutionally structured and must drop a lawsuit accusing a litigation funder of gouging NFL players and 9/11 responders. The CFPB is expected to appeal to the Second Circuit.

Judge Preska wrote, “Both the equities to the parties and the court’s interest in sound judicial administration and efficiency weigh heavily in favor of entering a final judgment.”

If the CFPB seeks review with the Second Circuit, the question of the bureau’s constitutionality will need to go before another appeals court.

Ballard Spahr consumer financial services co-practice leader, Alan Kaplinsky, told Law360, “That would all but ensure that the issue will get taken up by the U.S. Supreme Court.”

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