Credit Union Sues CUNA Over Risky Investments

Law360, New York (September 8, 2009, 4:04 PM EDT) -- Southeast Financial Credit Union has sued CUNA Mutual Insurance Society for allegedly selling high-risk products in what was intended to be a conservative executive compensation plan.

Southeast Financial filed suit Friday in the U.S. District Court for the Middle District of Tennessee, claiming CUNA's behavior was tantamount to fraudulent concealment.

The complaint alleges violations of U.S. Securities and Exchange Commission rules, violation of Tennessee law, breach of fiduciary duty and negligence. The suit also names CUNA executive benefit specialist Daniel Balogh as a defendant.

Southeast Financial...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.