Pacific State Execs Say Insurer's Suit Threatens FDIC Talks
By Howard Goodman
Law360, New York (June 18, 2012, 7:17 PM ET) -- Former officers and directors of the failed Pacific State Bancorp sought to dismiss Progressive Casualty Insurance Co.'s suit over coverage for a Federal Deposit Insurance Corp. lawsuit against them, arguing the coverage dispute could undermine the FDIC's ongoing investigation into the bank's collapse.
Pacific State Bank collapsed during the financial crisis in August 2010 and the FDIC took over as receiver. The government banking agency soon sued 15 of the bank's directors and officers for “negligence, gross negligence and/or breaches of fiduciary duties” for their role...