CertusBank Directors Settle Investor Suit for $19.2 Million

Former CertusBank NA directors agreed to pay $19.2 million to settle investors’ claims they wasted the defunct bank’s funds by equipping its corporate headquarters with luxuries such as a private gym and a 200-seat theater (3-Sigma Value Financial Opportunities LP v. Jones, Del. Ch., CA11655-VCG, letter 2/9/17).

Milton H. Jones Jr., CertusBank’s former chairman, and ex-Chief Executive Officer, Walter Davis, agreed to resolve a Delaware Chancery Court lawsuit filed by a group of investors who accused executives of lavish spending at what was once touted as the largest African-American controlled bank.

The directors, who didn’t admit wrongdoing, agreed ...