Federal Judge Refuses To Apply Business Judgment Rule In Failed Bank Suit

Federal Judge Refuses To Apply Business Judgment Rule In Failed Bank Suit

ATLANTA - A federal judge in Georgia on Nov. 25 refused to dismiss the Federal Deposit Insurance Corp.'s suit alleging that former executives of the failed Buckhead Community Bank were negligent in their management of the bank's loan portfolio and certified to the Georgia Supreme Court the question of whether the business judgment rule in Georgia precludes a claim for negligence against the officers and directors of a bank in a suit brought by the FDIC as the receiver for the bank (Federal Deposit Insurance Corp. v. R. Charles Loudermilk Sr., et al., No. 12-4156, N.D. Ga.; 2013 U.S. Dist. LEXIS 166924).

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