DETROIT – An Arab-American family whose business and personal
bank accounts were closed in 2014 without explanation can sue JPMorgan Chase
for racial discrimination, a federal judge in Detroit has ruled.

Filed in February, the lawsuit by Najah Manni, his wife Kathy
and their two children says the largest U.S. bank further discriminated against
them by terminating a contract with their debt collection and services business
in 2015, defaming Najah as a “reputational risk” in the process.

They are seeking damages for defamation and violations of
Michigan’s Elliot-Larsen Civil Rights Act and the U.S. Equal Credit Opportunity
Act.

“We believe this case and the allegations of discrimination
are without merit,” said JPMorgan spokesman Darin Oduyoye.

In a decision on Wednesday, U.S. District Judge Sean Cox
rejected the bank’s motion to dismiss the lawsuit, finding discrimination was a
plausible explanation for why the bank “unilaterally terminated” more
than 30 profitable accounts held by the Mannis.

The judge noted the family’s claims that other Arab-Americans
had complained of similar account closures.

JPMorgan had argued that its deposit agreements permitted it to
close accounts “at any time for any reason or no reason” and said
there was no evidence of discrimination.

The Mannis, who state in their complaint that they are of Arab
and Chaldean descent, own Michigan-based JM Adjustment Services. They claim
they previously had $5 million deposited with JPMorgan.

JM Adjustment also provided services to JPMorgan until its
contract was terminated in 2015.

In their lawsuit, the Mannis claim JPMorgan told Najah the
arrangement was ending because he posed a “reputational risk” to
their business.

The Mannis had plausibly claimed the bank’s explanation for the
termination might be a pretext for discrimination, Cox said.

The Manni family is represented by former Michigan U.S. Senator
Carl Levin, now a lawyer at Detroit’s Honigman Miller Schwarz & Cohn in
Detroit.

A number of Arab-American groups have complained of sudden
account closures in recent years.

In 2013, the Arab-American Civil Rights League filed a proposed
class action against Huntington National Bank, part of Ohio-based Huntington
Bancshares, over the issue. The case is still pending, with a settlement
conference set for August.