It's A Business Not A Criminal Enterprise (Any Longer)
12/17/18
By: David Molinari The operation of a commercial cannabis business presents a host of unique issues. Security is a concern when the business stores hundreds of thousands of dollars in “inventory” on site. Banking regulations present another problem requiring these enterprises to be a cash-based business; a requirement brought on by federal forfeiture laws if…
7/21/14
By: Michael Wolak, III The business judgment rule is an iconic fixture in American corporate jurisprudence reflecting a strong judicial reluctance to question the business judgments of directors and officers. In its classic form, the business judgment rule insulates a company’s directors and officers from liability for negligence in the discharge of their fiduciary duties…
FDIC Publicizes Failed Bank Settlements
3/28/13
By: Kelly Morrison In an apparent response to criticism for their lack of transparency, the FDIC has published dozens of settlement agreements arising out of the now 106 lawsuits the agency has filed against failed banks. The FDIC has indicated that it will post additional settlement information by March 31. These settlement agreements provide valuable…
Georgia's Failed Bank Litigation Addresses “Insured vs. Insured” Coverage Exclusion
1/10/13
By: Kelly Morrison Georgia is no stranger to failed banks, and thus continues to host to a number of FDIC lawsuits against former directors and officers. Not surprisingly, these lawsuits are testing the legal waters regarding several coverage exclusions, as D&O insurers batten down the hatches in anticipation of further lawsuits. On January 4, 2013,…
FDIC Ramps Up Failed-Bank Litigation in Georgia, Re-Asserts Ordinary Negligence Arguments
10/26/12
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…
FDIC Continues to Pursue Directors and Officers
9/4/12
By: Ben Mathis
The FDIC continues to file a number of claims around the country against directors and officers of failed financial institutions. Recent decisions in Georgia, however, have raised the bar in holding that the business judgement rule requires the FDIC to prove gross negligence, as opposed to ordinary negligence, which is a much