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Judge Clears $12.5M Deal In NetBank Investors' Suit

Posted: November 9, 2011
By: Roxanne Palmer
Source: Law360
Practice Areas: Securities Litigation

A Georgia federal judge on Wednesday approved a $12.5 million settlement in a class action targeting online bank NetBank Inc. and executives for allegedly defrauding investors by not disclosing the bank's true condition before its takeover by federal regulators and subsequent liquidation.

U.S. District Judge Timothy C. Batten approved the terms set in a stipulation filed by the parties in July, finding that "the settlement is, in all respects, fair, reasonable and adequate and in the best interest of the class."

The settlement represents about a 35 percent recovery of the $35.7 million damages estimated by the lead plaintiff, which is a reasonable percentage, attorneys for lead plaintiff Robert A. Brown said in a brief filed in July.

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