Alabama Governor Robert Bentley and his Deputy Legal Advisor Carrie McCollum have been added as defendants in a federal lawsuit filed by Alabama One Credit Union.

According to court documents filed Wednesday, Alabama One sued Bentley and McCollum, alleging a statewide conspiracy, due process violations and defamation charges.

“The lawsuit alleges that public officials, enabled by the personal and direct participation of Gov. Bentley, conspired to attempt to coerce tens of millions of dollars in legal settlements from the credit union through improper and unwarranted regulatory sanctions after it received clean bills of health from state and federal regulators,” read a Wednesday release from the credit union.

The ACUA scheduled a board meeting for Thursday at 9:30 a.m. CST, but did not disclose whether Alabama One is on the agenda. However, Jeven Sloan, an attorney for Alabama One, said the credit union expects to be addressed during the meeting. According to its website, the ACUA board met in a special meeting Aug. 12 to consider an appeal from Alabama One.

The $598 million, Tuscaloosa, Ala.-based credit union filed the lawsuit two months ago following years of regulatory inspections, allegations of fraud and lawsuits. President/CEO John Dee Carruth said he has proof of a state government conspiracy against him, several of his colleagues and his financial institution, in the form of dozens of emails, depositions and other documents he shared with CU Times.

Alabama One alleged secret meetings occurred at the governor's office and with his knowledge and permission, but didn't name him in the lawsuit initially.

“We named the defendants in this lawsuit based on our understanding of who the key actors were with regard to the specific communications and conduct we alleged,” Sloan previously told CU Times. “There is no doubt that the evidence on which we based our allegations indicates that meetings between certain of these defendants and a great deal of the improper conduct we have alleged emanated from the governor's office at the state Capitol and that the governor personally attended one or more of these meetings. We are committed to vigorously prosecuting this lawsuit and, if we later determine there are other parties who should be joined as defendants, we will not hesitate in adding them to this lawsuit. In the end, our singular goal is to bring justice to Alabama One Credit Union and Mr. Carruth and to hold all culpable parties accountable.”

Bentley did not return calls asking for comment on the allegations.

The suit was filed following “threats that the Alabama Credit Union Administration, which was allegedly being used as 'weapon of destruction,' would place Alabama One in conservatorship – the agency's harshest sanction,” the release said. “Alabama One and Mr. Carruth filed the lawsuit to seek recovery for the injuries they have suffered as a result of the alleged sustained and relentless campaign of regulatory and governmental overreach to push a nongovernmental agenda.”

Defendants now include Bentley, the Governor's Chief Legal Advisor David Byrne, McCollum, State Sen. Gerald H. Allen (R-Tuscalossa), Alabama Credit Union Administration Administrator Sarah Moore, member plaintiff attorney Justice “Jay” Smyth III, attorney Albert G. Lewis III, former ACUA Administrator Larry Morgan, former Alabama One employee Lori Ramos Baird and attorney Bobby Cockrell.

So far, Moore, Byrne and Key have filed motions to dismiss the suits against them. Alabama One has until Thursday to show cause as to why its complaint should not be dismissed.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.