Investor Suit Against Defunct Bank Stayed For FDIC

Law360, New York (December 14, 2009, 6:20 PM EST) -- A federal judge has granted a request from the Federal Deposit Insurance Corp. to stay a securities suit brought against the newly defunct Millennium State Bank of Texas.

Judge Sidney Fitzwater of the U.S. District Court for the Northern District of Texas ruled Thursday that the case would be stayed until the FDIC disallowed the plaintiffs’ claims or until the 180-day administrative review period expired.

In passing the Financial Institutions Reform, Recovery and Enforcement Act of 1989, Congress tried to establish a scheme for fairly adjudicating...
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