Ex-Shareholders Lack FDIC Collection Rights: Fed. Circ.

Law360, New York (March 21, 2013, 5:03 PM EDT) -- The Federal Circuit said Thursday that a former Meritor Savings Bank shareholder who sold his shares after the bank went into Federal Deposit Insurance Corp. receivership is not entitled to collect on a $276 million award in a derivative suit over the FDIC’s breach of an acquisition agreement with the bank.

A three-judge panel ruled that federal law requires any surplus from the Federal Deposit Insurance Corp. receivership of a bank to be distributed to those who own shares at the time those funds are distributed,...
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