Defunct Bank's Officers Kick Investor Suit Over Bad Loans

Law360, Los Angeles (February 13, 2012, 6:02 PM EST) -- A federal judge on Monday dismissed a securities class action and scaled back a related $26.2 million Federal Deposit Insurance Corp. lawsuit against ex-officers and directors of the now-defunct First Centennial Bank who allegedly disregarded the bank's underwriting standards in issuing 16 risky commercial real estate loans.

U.S. District Judge John A. Kronstadt said the securities lawsuit — brought in California federal court by a class of First Centennial shareholders — didn't provide specific information showing the bank's directors and officers knew they were making false...
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