Capital One gets pause in evidence-sharing in Trump lawsuit – report

A court order allowed Capital One Financial (NYSE:COF) to delay the evidence-sharing phase of a lawsuit that accused it of closing accounts of President Donald Trump’s company in 2021 for political reasons, according to a media report.

Capital One (NYSE:COF) stock gained 3.3% in Wednesday premarket trading. After the close on Tuesday, the company posted Q2 earnings that beat consensus, but revenue that missed.

The order dated Tuesday from U.S. Magistrate Judge Enjolique Lett put the evidence-exchange process, known as discovery, on hold while the court decides if the suit will be dismissed, Bloomberg News reported on Wednesday.

The bank contends that it would be an unnecessary burden for both sides to begin discovery, an expensive process that can drag on, because the suit is likely to be dismissed. It has said the lawsuit fails to present facts to support its allegation that the account closings were for political reasons.

The Trump Organization, which filed the suit in March, alleged that the bank ended its decades-long relationship with the company “simply because Capital One believed that the political views at the time favored doing so.”

President Trump is not a plaintiff in the case. He, however, has accused big banks of de-banking conservative clients.

Capital One (COF) filed a motion to dismiss the suit on July 11. The Trump Organization has until July 25 to respond to the motion to dismiss, Bloomberg said.

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