Community Bank of Northern Virginia and Guaranty National Bank of Tallahassee
A full hearing and argument were held before the ADR panel commencing February 1, 2017, and concluding on March 15, 2017. On March 24, 2017, the panel issued its ruling. The panel unanimously selected $24,000,000 as the amount that they believed most closely reflected the total valuation of the case. A copy of the panel’s ruling is linked below. It is anticipated that settlement checks will be mailed to class members in the next 30-60 days.
The Kessler-ResCap Bankruptcy Settlement has been funded and settlement checks were mailed to class members on April 4, 2017. A copy of the Kessler Settlement Notice is linked below. Paragraph 8 of the notice provides specific details regarding the formula used to determine the amount any given class member received.
After conducting numerous mediation sessions between Defendant PNC Bank (the successor to CBNV) and Plaintiffs’ Co-Lead Counsel over the past few months, the Parties have agreed to a class settlement. Pursuant to that agreement, on August 19, 2016, Judge Schwab issued an Order appointing a three-member alternative dispute resolution panel (the “ADR Panel”) that will consider the evidence and determine whether the class of CBNV borrowers will receive $24 million or $70 million. The Order directs the ADR Panel to make its ruling no later than March 31, 2017. Plaintiffs’ Unopposed Motion for Preliminary Approval of Class Action Settlement was granted on September 14, 2016. Notice of Preliminary Approval of Class Action Settlement will be mailed to all CBNV class members within 30 days of the preliminary approval order. A copy of that Notice and the aforementioned Orders and other documents are available by clicking on the hyperlinks found below. Those documents describe in more detail the terms and conditions of the settlement.
The Kessler Settlement reached through the ResCap bankruptcy proceeding in the Southern District of New York provides for payment to class members comprising both CBNV and GNBT borrowers. The process for finalizing the settlement is close to being completed and we anticipate that a disbursement of monies to class members will be made no later than the end of the first quarter of 2017. A link to a copy of the Notice for the Kessler Settlement can also be found below.
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