TUSCALOOSA, Ala.–The former CEO of Alabama One Credit Union has also filed suit against the state regulator, claiming he was illegally dismissed from the position when the credit union was placed in conservatorship in August.
John Dee Carruth, is seeking to be reinstated as CEO, and is also asking in his suit that the former board and management team also be returned. Carruth’s suit is separate from the suit filed earlier against the Alabama Credit Union Administration by eleven members of the management team and board who are also seeking to be reinstated, as CUToday.info reported here.
The Alabama Credit Union Administration placed Alabama One into conservatorship in August and is managing the institution itself with no interim CEO named. It said it took the action after Alabama One refused to comply with an earlier cease-and-desist letter that stated the CU had concealed books, records, papers and/or assets from inspection and examination by the ACUA.
Similar to the other suit, Carruth filed his lawsuit at the Tuscaloosa County Courthouse and has named the ACUA and Administrator Sarah Moore as defendants. The Tuscaloosa News reported that Attorney Robert Reynolds, who represents the ACUA, has filed a motion to consolidate the two lawsuits and that a formal response to both suits will be filed suit.
Carruth led Alabama One as CEO for 18 years, and is arguing in his suit that the regulator lacked any legal basis or justification for the conservatorship. The $598-million Alabama One, however, did report losses of nearly $8 million during 2014, and nearly $4 million through the first half of this year.