A civil lawsuit against eight former directors of Peoples First Community Bank in Panama City, Fla. has been dismissed. The Federal Deposit Insurance Corporation alleged the former Peoples directors negligently approved several loans to developers who couldn't repay the loans following the housing market crisis and sought to regain millions lost when the bank failed in 2009.
Litigation Partner Charles Wachter, who represented the bankers against the Federal Deposit Insurance Corporation, said his clients were confident they would have prevailed at trial but opted to settle the case to avoid the cost and disruption of a trial expected to last around a month. The case was settled for a fraction of the damages sought. Each party will cover its own costs and expenses according to the stipulation. There is no liability or adjudication attached, and the suit can never be reopened.
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