Corporate America Credit Union won round one late Thursday afternoon in its lawsuit against U.S. Central and its accounting firm RubinBrown. U.S. District Judge Inge Prytz Johnson denied RubinBrown's two motions to dismiss the case.
At least five corporate credit unions had posted their unaudited December month-end financial statements online as of press time.
Despite alleging different crimes, the three lawsuits targeting seized corporate credit unions have one thing in common: defendants are arguing plaintiffs don't have the right to sue because the charges are so-called "derivative claims."
In three separate lawsuits that involve U.S. Central Federal Credit Union and Western Corporate Federal Credit Union, defendants argue plaintiffs don't have the right to sue, because charges are so-called "derivative claims."
The fate of Corporate America Credit Union's securities fraud lawsuit against former U.S. Central Federal Credit Union executives and volunteers is now in the hands of an Alabama federal judge: the Hon. Inge Johnson.
After releasing November financial statements, in which many corporate credit unions wrote off 100% of their U.S. Central capital investments,