Settlement of FDIC Suit Against the Community Bank of Arizona

We represented four outside directors in a lawsuit brought by the FDIC against the officers and directors of Community Bank of Arizona (the Bank).  The Bank failed in August of 2009, and the FDIC, as receiver for The Bank, alleged that the Bank’s officers and directors caused the failure by approving risky real estate loans.  We also represented the four outside directors in a declaratory judgment action by the Bank’s D&O carrier, which argued that any liability of the directors and officers to the FDIC would not be covered.  We successfully mediated the cases to a global settlement wherein our clients faced no out-of-pocket expense.

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