A federal judge in Atlanta has taken issue with his fellow judges over whether a Georgia law protects the corporate officers and former executives of a failed bank from personal liability for the bank’s losses if they are found to have neglected their corporate duties.
In ongoing civil litigation stemming from the December 2009 collapse of the Buckhead Community Bank, U.S. District Judge Thomas Thrash Jr. said he disagreed with other judges of the U.S. District Court for the Northern District of Georgia in Atlanta who have ruled that the state’s “business judgment rule” largely exempts corporate officers and directors from liability for the failure of the banks they governed.
