In a complicated ruling last week, Judge George Wu opened a door that had seemed closed, by agreeing to allow cases against WesCorp's outside directors to proceed. That decision is a reversal of a draft ruling circulated by the judge in late December in which he proposed dismissing all charges against the outside directors.
The NCUA had filed in opposition to that draft ruling, offering extensive argument that the outside directors in fact had culpability in the losses incurred by WesCorp.
In the ruling, the judge concluded that "the end result might very well be the same" after "a new round of motion to dismiss briefing." That is, the charges may still be dismissed after the NCUA amends its filings. But, for now, and despite signaling skepticism that the NCUA argument will prevail, Judge Wu agreed that the defendants will get the day in court that the plaintiff has asked for.
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