Supreme Court Ruling Reshapes Legal Strategy for Financial Services Firms

In a landmark decision on June 27, 2025, the U.S. Supreme Court in Trump v. Casa, Inc. that “nationwide injunctions”—orders that enjoin federal actions for anyone potentially affected by them, not just those involved in a lawsuit—likely exceed the authority granted to federal courts under the Judiciary Act of 1789. Although the case concerned an immigration law dispute, its implications abound for consumer financial services.

What Changed?

Historically, federal courts could only provide relief to named parties in a case, with limited exceptions, such as class actions. However, recently, and with increasing frequency, federal courts have issued sweeping injunctions against the federal government that apply beyond the named plaintiffs. These “universal” or “nationwide” injunctions have been used to halt federal regulations or actions across the board. The Court’s decision in Casa reaffirms a narrower view—courts may only grant relief to the actual parties in a case, except in limited circumstances, like class actions.

Why It Matters for Financial Services

This ruling could reshape how financial institutions and trade associations challenge federal regulations and agency action. For example, in a recent case, a union representing the Consumer Financial Protection Bureau (CFPB) employees secured an injunction to stop a reduction in force, benefiting employees who weren’t directly part of the lawsuit. Under Casa, such broad relief may no longer be permissible.

Similarly, trade groups like the U.S. Chamber of Commerce may face new hurdles when suing the CFPB or other agencies on behalf of their members. Justices Thomas and Alito suggested that associations may now need to identify specific members affected by a regulation to obtain injunctive relief.

The APA: A Path Forward

Importantly, the Court left untouched the authority granted under the (APA), which allows courts to “set aside” unlawful agency actions. Though the meaning of “set aside” remains , APA challenges could still result in broad relief from federal rules—offering a critical tool for financial services firms seeking to push back against regulatory overreach. Indeed, a group of financial services firms recently secured of the CFPB’s medical debt rule under the APA, indicating universal relief is still possible under that statute.

Strategic Takeaway

The end of nationwide injunctions narrows the litigation playbook, but it doesn’t close the door. Financial services firms can still pursue targeted lawsuits and leverage the APA to challenge problematic regulations and agency actions. The key will be crafting more precise, party-specific legal strategies. Should you have questions about the forgoing, please do not hesitate to contact any of the authors or the Manatt professional with whom you work.