Sunday, May 17, 2015

Jury Awards Developer $3.2 Million after CU Fails to Close on Loan

A Worcester Superior Court jury last week awarded the developer of an abandoned Shrewsbury hotel project $3.2 million after finding that Central One Federal Credit Union intentionally misled him about the status of a loan that fell through.

According to the plaintiff's lawyer, the judgment could increase significantly, if the judge finds the credit union engaged in unfair or deceptive practices.

The lawsuit claimed that the project fell apart after Central One failed to close on an $8 million loan despite repeated assurances the deal would go through.

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1 comment:

  1. AnonymousMay 17, 2015 at 2:37 PM

    Dr. Leggett.
    The credit union net worth ratio drops about 100 bps.
    Can't handle much more of a "judgement" without dropping to adequate.
    Perhaps bill brooks should visit the board and preach the virtues of getting back to the "mission".

    ReplyDelete

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