Valley National Bank faced legal scrutiny and controversies involving commercial loan participation agreements and employment practices. A prominent federal lawsuit involved allegations by LendingClub Bank asserting that Valley misrepresented material information, delayed crucial communications, and mishandled default protocols on a commercial real estate loan participation to protect other overlapping loans it held with related borrowers. Additionally, the bank faced class-action litigation filed by former financial underwriters alleging failures to pay proper overtime compensation, highlighting operational and compliance friction across its corporate governance framework.