NetBank Class Action Settlement

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Judge Timothy Batten of the United States District Court for the Northern District of Georgia on November 9, 2011 approved a 12.5 million dollar settlement in a class action lawsuit filed against online bank NetBank, Inc. and its executives for allegedly defrauding investors by not disclosing the bank’s true condition before its takeover by federal regulators and subsequent liquidation.

 

Mike Gorby and Mary Donne Peters along with the Philadelphia law firm of Berger and Montague, P.C represented the plaintiff class in this litigation which was filed on September 19, 2007. In approving the class action settlement, Judge Batten stated, “It’s hard to imagine a class action being litigated more appropriately, forcefully, hard fought.”

 

The class action complaint was filed in September, 2007, shortly before the Alpharetta, Georgia based NetBank filed for Chapter 11 protection.