CBS Workers Want $40M In Wake Of Credit Union Implosion

Law360 (August 12, 2019, 11:00 PM EDT) -- Former members of the CBS Employees Federal Credit Union are looking to recover $40 million in damages from the failed financial institution's leadership, according to a suit filed Friday, a few months after the credit union's former manager pled guilty to stealing that amount in a 20-year embezzlement scheme.

Named plaintiff Victor Webb hit nine board members and three supervisory committee members with a putative class action in California state court. Webb claims the devastated credit union's board of directors and supervisory committee should've exercised "reasonable oversight" of the credit union's management, and that negligence allowed former CEO Edward Martin Rostohar...

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