The FDIC filed its third lawsuit against selected former directors and officers of a failed financial institution on January 14, 2010. The defendants in the lawsuit are certain former directors and officers of Integrity Bank (Alpharetta, Ga.), which the FDIC placed into receivership on August 29, 2008. The complaint, which was filed in the U.S. District Court for the Northern District of Georgia, asserts claims for negligence, gross negligence and breach of fiduciary duty.
The central theme of the complaint is that the defendants served on the bank’s Director Loan Committee, and in that capacity they pursued an “unsustainable growth strategy designed to exploit the then-expanding ‘bubble’ in the residential and commercial real estate market.” Directors who did not serve on that committee were not sued. The FDIC alleged a variety of misdeeds by the defendants, including the following:
- the adoption of a loan policy that set a