California Judge Grants Key Bank's Motion to Dismiss Class Action Case.

Dear California KeyBank/SSH students

On April 12, 2010, Judge Henderson of the Federal District Court, Northern District of California, granted KeyBank's motion to have our class action case against KeyBank thrown out of court. Although he found that we adequately alleged that KeyBank violated California's unfair competition law by violating the FTC Holder Rule in three different respects, he determined that our claims under California law are "pre-empted" by certain regulations issued by the Office of Comptroller of the Currency. While we have the utmost respect for Judge Henderson, we believe he got it wrong this time.

We are of course, devastated by this ruling and we understand the enormous financial impact this may have on you for the rest of your lives. Regrettably, unlike SLX which offered reasonable settlement terms to its borrowers, we never recieved any reasonable offer from KeyBank for a class-wide resolution.

We do intend to appeal to the Ninth Circuit Court of Appeals. We are also evaluating other options as well.

Sincerely,

Andrew August and Kevin Rooney, Pinnacle Law Group