Carter Bankshares (CARE) has released an update.
Carter Bankshares, Inc. is embroiled in a lawsuit filed by GLAS Trust Company LLC seeking to recover $226 million related to financing transactions that took place between 2018 and 2019 involving West Virginia Governor James C. Justice II’s family businesses and the now-insolvent Greensill. While Carter Bank received funds in what it claims were ordinary repayment transactions, GLAS alleges these were part of a scheme defrauding investors. Carter Bankshares and Carter Bank, asserting that the allegations are false, intend to vigorously defend against the claims and leverage a pre-existing indemnity agreement with Justice’s entities, which includes substantial collateral, to protect against losses from the lawsuit.
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