Shareholders of a Dunmore bank said its board of directors mismanaged the institution so badly it drove the bank’s stock price down 80 percent in three years. Now they are taking the bank to court.
The suit claims the board of FNCB of Dunmore gave the go-ahead to high risk real estate loans. Many of them went to other board members and their friends.
Those behind the suit said the move cost the bank tens of millions of dollars and hurt several local investors who bought stock in the bank.
“In the desire for some of these lead directors to help their friends acquire some financial worth, particularly those friends on the board, their vision became blurred in making those loans,” said Joe Solfinelli, attorney for the plaintiffs.
Wednesday afternoon the bank responded to the suit in an e-mail, writing, “As a matter of general policy, neither the company nor the bank comments on pending legal or regulatory matters.”