A limited liability company and its manager have filed a lawsuit against a national bank, alleging that it unlawfully froze their business account for over ten months without explanation.
Plaintiffs PG US SPV I, LLC and Prakash Govindan names JPMorgan Chase Bank, N.A. as the defendant in this matter and alleges that Chase Bank violated the terms of a Depository Agreement by freezing more than $1 million held in PG US’s business account. According to the complaint, the freeze occurred without notice, explanation, or indication of when access would be restored. The plaintiffs argue that this conduct breached the implied covenant of good faith and fair dealing under New York law.
PG US and Govindan claim that the account freeze caused significant harm by preventing them from making planned investments and pursuing financial opportunities. They allege that the freeze created a reputational burden, casting unwarranted suspicion over their operations and damaging relationships within the financial sector.
The plaintiffs are seeking equitable relief and damages for lost profits and other economic harm. They also request a court order compelling Chase Bank to disclose the reasons behind the freeze and to prevent future account restrictions without due process.
The plaintiffs are represented by attorney Alana Yakovlev. The case was filed in the United States District Court for the Eastern District of New York under case number 2:25-cv-02842.