Carter Bankshares, Inc. (NASDAQ:CARE), a Virginia-based financial institution, announced today the resolution of a lawsuit filed by GLAS Trust Company, LLC against its subsidiary, Carter Bank & (NASDAQ:CARE) Trust. The suit, originally brought to the United States District Court for the Western District of Virginia on February 10, 2024, has been dismissed with prejudice following a confidential settlement.
The dismissal "with prejudice" ensures that GLAS Trust cannot refile the lawsuit or pursue further legal action on the same claims. Additionally, GLAS Trust, along with certain affiliates and parties, has released Carter Bank from any potential claims related to the lawsuit.
The legal dispute centered on Carter Bank's lending relationship with James C. Justice, II, and related entities (the "Justice Entities"). As part of the settlement, the Justice Entities have reaffirmed the validity and enforceability of their loan agreements with Carter Bank.
Carter Bankshares will disclose the financial implications of the settlement in its upcoming earnings release and Form 10-Q for the quarter ending September 30, 2024. This settlement marks the end of all pending litigation against Carter Bank in relation to its dealings with the Justice Entities.
The company's statement included forward-looking comments regarding its financial condition and potential outcomes from its loans to the Justice Entities. However, it cautioned that these statements are based on current beliefs and expectations, which may differ from future results.
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