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U.S. Central papers key in Corporate America lawsuit v. NCUA
BIRMINGHAM, Ala. (11/15/10)--More than 750,000 pages of documents related to the decision-making process at the U.S. Central FCU before it was placed into conservatorship by the National Credit Union Administration (NCUA) are at the heart of a suit filed last week by the Alabama-based Corporate America CU against NCUA. Corporate America filed the complaint in a U.S. District Court for the Northern District of Alabama in Birmingham on Nov. 10. It seeks documents that it hopes would shed light on the decisions made regarding member credit unions' paid-in capital by U.S. Central's volunteer board of directors and officials in 2008, as the nation's credit crisis heated up. Wednesday's complaint said Corporate America originally subpoenaed documents from U.S. Central on May 5 as part of its lawsuit against U.S. Central's former directors and officers. It sued the officials because U.S. Central was liquidated. However, the corporate was told by U.S. Central that its documents were in the possession of NCUA as its conservator and that the corporate would need to make the request under the Freedom of Information Act, the complaint said. The corporate narrowed its scope of documents requested on June 25 and issued a written request for documents, but on July 19 it received "a response from NCUA refusing to produce certain categories of requested documents" and saying that NCUA wanted a prior agreement from the corporate that the production of such documents would satisfy the agency's obligations. The corporate modified its request and has waited for a response and the documents for more than four months, the complaint said. The suit also claims NCUA produced more than 750,000 pages of documents and made others available for inspection and copying to counsel for the directors and officers named as defendants in the original litigation. The corporate is seeking an order to produce the documents and costs and expenses of the litigation. NCUA told News Now it cannot comment on pending litigation.


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