Virginia M. Damon Trust v. Mackinaw Financial Corporation et al.
Court: United States District Court for the Western District of Michigan
Case No.: 03-cv-0135
Leadership Position: Co-lead Class Counsel
This shareholder derivative action alleged that the former CEO of North Country Financial Corporation’s (now Mackinac Financial Corp.) breached his fiduciary duties by mismanaging the bank’s commercial loan portfolio, failing to heed repeated warnings from regulators regarding internal controls, and failing to correct specific deficiencies in the bank’s underwriting, loan collection, and loan administration functions. Plaintiff further alleged that the Bank underwent years of gross mismanagement that ultimately resulted in cease and desist orders from the Federal Deposit Insurance Corporation and the Michigan Office of Financial and Insurance Services. Through Wexler Boley & Elgersma’s efforts, the bank received a multi-million dollar settlement.