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By: Kelly Morrison
Though the FDIC remained quiet through summer vacation and into early fall, they have once again filed suit against a failed Georgia bank, American United Bank of Lawrenceville, which was closed by regulators on October 23, 2009. A copy of the complaint can be viewed here.
Notably, the new complaint includes allegations of ordinary negligence. Similar factual and legal allegations were recently dismissed by Northern District Judge Steve C. Jones based upon the protections of the business judgment rule. Apparently looking for another bite at this apple, the FDIC has attempted to assert that the business judgment rules does not apply due to the defendants’ undertaking of “unreasonable” lending risks.