Hey! Anyone out there remember LandAmerica? I know at least two people who do; one is a LandAmerica 1031 exchange victim still waiting for justice to be served while the other is now serving as senior VP and general counsel at the Richmond Fed.
Turns out the sad, twisted tale of LandAmerica didn't end with bankruptcy (but we knew that). The bankruptcy trustee has filed a lawsuit in Virginia on behalf of the victims seeking $365 million in damages. The suit was filed last month in Richmond and alleges that LandAmerica executives breached their fiduciary duty of care when they put client money into auction-rate securities, money that was later vaporized when the ARS market seized up in February of 2008.
Among the defendants are former LandAm CEO Theodore Chandler and former chief legal officer (now advising the Richmond Fed) Michelle Gluck.
LandAmerica execs' lawyers Saul Pilchen of Skadden, Arps, Slate, Meagher & Flom and Scott Fredericksen of Foley & Lardner told Richmond BizSense that the lawsuit is BS.
“The LFG Trustee’s complaint seeks unfairly and inappropriately to judge the conduct of our clients with the benefit of hindsight, and turns a blind eye toward much of what actually occurred,” they said.
“The named LFG officers and directors acted in complete and informed good faith, served the best interests of shareholders and customers, and exercised prudent and well-informed business judgment throughout the process.”
You can find the suit in its entirety below for your reading pleasure:
Lfg Trust Civil Lawsuit