RICHARDSON, Texas — Texans Credit Union has no comment on a lawsuit filed by three former executives but it did say there are no plans to convert to a bank.
In a lawsuit filed on Dec. 29, 2006, former Texans Commercial senior executives John C. O'Shea, Paul J. Valdez, and Joel B. Fox have claims against $1.6 billion Texans CU and the CUSO for defamation, fraud and breach of contract, according to an article in today's Dallas Business Journal. While the suit is on record with the Dallas County District Court, 68th Judicial District, "the record is closed" and "public access to [the] file is denied," Credit Union Times discovered after an online search on the court's Web site.
The three claimants allege that they were fired in August 2006 amid discussions from the CU about selling Texans Commercial Capital to a larger CU or converting Texans CU to a bank.
In an e-mailed statement, Matthew Davis, executive vice president at Texans CU, wrote "Texans Credit Union can not comment on pending litigation." Davis also responded to a question about the bank conversion claim.
"Regarding the industry sensitive topic of conversion, Texans has no plans in the foreseeable future to convert to a bank," Davis wrote.
Credit Union Times did obtain a register of actions on the case. Texans CU, Texans Commercial Capital and David Addison, president/CEO of the CU, were served on Jan. 17, 2007.
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