U.S. District Court Judge Emmet Sullivan yesterday dismissed a lawsuit by the leaders of Kappa Alpha Psi FCU challenging the NCUA's liquidation of the credit union.
Management of the tiny Kappa Alpha Psi Federal Credit Union of Dallas ratcheted up appeals for industry support in their challenge of the NCUA's liquidation order.
Despite ongoing federal court proceedings addressing its actions, the NCUA has moved forward with the liquidation of the $780,000 Kappa Alpha Psi Federal Credit Union.
Kappa Alpha Psi Federal Credit Union, a predominantly African-American community development credit union headquartered in Addison, Texas, is fighting an NCUA liquidation order in court.
Lawyers for the NCUA and the now closed Kappa Alpha Psi Federal Credit Union have asked U.S. District Judge Emmet Sullivan to reschedule deadlines for their briefs and to postpone when he will hear arguments in their case.
The NCUA liquidated KAPFCU despite an ongoing court battle in order to protect the assets of the CU's members, the agency said.
NCUA has until Friday at 12:00 pm to explain to the U.S. District Court for the District of Columbia why the court should not prevent it from liquidating the Kappa Alpha Psi Federal Credit Union.