BFCU's lawsuit comes after Friedman's management firm and the taxicab companies filed for Chapter 11 bankruptcy earlier this year.

However, even if the Long Island-based credit union is able to secure those medallions, their resale values have significantly declined because of aggressive competitive pressures from ride sharing services such as Uber and Lyft.

In March, for example, a medallion sold of $241,000,   less than one-fifth what the metal tags were going for about four years ago. Additionally, throughout this year, some medallions have sold for $200,000 or less throughout the year. However, according to monthly sales reports from the New York Taxi and Limousine Commission, numerous medallions have been sold at much higher prices from about $400,000 to $1.3 million.

BFCU originally filed its civil lawsuit New York state court, but the credit union wants to transfer the case to New York City's federal court because of the bankruptcies of Friedman's management company and the cab companies.

In its Nov. 22 court filing, BFCU said it is seeking judgement against the cab companies and the "immediate possession" of their medallions, which "could conceivably have" an effect on their bankruptcy estates. Additionally, Bethpage said in its lawsuit that it is seeking judgement against Freidman, as the guarantor on the medallion loans, because he may seek "contribution or indemnification" from the cab companies, which also could have an effect on their bankruptcy estates.

A few weeks before BFCU filed its lawsuit, another lawsuit appeared on the New York City federal court docket that was filed by more than 100 taxicab medallion owners who are suing Friedman and the companies he owns that managed the cabs for medallion owners.

According to the lawsuit, Friedman's management companies were supposed to make payments on the medallion loans to Melrose CU and other lenders from revenues generated by the taxi fares. Despite sufficient earnings that were generated from the fares, Friedman failed to make the medallion loan payments. As a result, Melrose CU repossessed the cabs and the medallions.

In their lawsuit, the cab medallion owners claim all of the revenue they earned from their fares was allegedly directed to other accounts managed and controlled by Friedman. The cab owners are asking for a full accounting of this revenue and they are also seeking unspecified compensatory damages from Friedman.

In addition, Friedman is facing other legal issues and criminal charges.

In June, for example, New York Attorney General Eric T. Schneiderman charged Freidman with theft and failure to pay more than $5 million in 50-cent MTA surcharges assessed on taxi fares between 2012 and 2015. During this time, Freidman managed a fleet of about 800 medallion taxicabs in Manhattan, Brooklyn, Woodside, and Long Island City. Friedman has denied the allegations, according to the Associated Press.