Cheney et al Request Dismissal of NCUA Suit in WesCorp Suit
Attorneys for CUNA President/CEO Bill Cheney and other former WesCorp directors and one former executive asked a judge to dismiss NCUA's lawsuit alleging a breach of fiduciary duty and negligence.
The motion alleges that the decisions made about WesCorp were exempt from a lawsuit by a California statute that insulates the content and result of business decisions from judicial review if the process was rational. It also alleges that the NCUA doesn't provide evidence that the investments were made in a grossly negligent manner. In addition, the respondents contend that the NCUA lawsuit was filed after the statute of limitations had expired.
The motion was filed in advance of a hearing on the case, scheduled to be held in U.S. District Court in Los Angeles.
The motion was filed on behalf of Cheney, former executive Robert Burrell and former directors Robert H. Harvey, Jr., James Jordan, Timothy Kramer, Robin Lentz, John Merlo, Gordon Dames, Warren Nakamura, Brian Osberg, David Rhamy and Sharon Updike.
The NCUA placed WesCorp into conservatorship last year following extensive losses from the credit union's investments in mortgage backed securities.