Something odd came across the Middle District docket reports this week: a recusal in Morse et. al v. McWhorter et. al, the 1997 federal securities class action filed against what was then HCA/Columbia by stockholders in the wake of the HCA fraud prosecution.
The original litigation took long enough — the $49.5 million settlement was not approved until 2004. And since that time, the case has lied dormant. Though technically closed, it still active in the system because of the administration of the settlement fund.
This summer, a motion was filed to close the fund and distribute the unclaimed remainder in the settlement account (about $52,000) to the Legal Aid Society of Middle Tennessee and the Cumberlands and MFY Legal Services, a New York City-based legal aid organization.
The case has long been under the gavel of Judge William Higgins. But with Higgins since retired, the motion was assigned on Sept. 30 to Judge Todd Campbell. However, Campbell recused himself (for reasons unknown) this week. The case has now been assigned to Senior Judge William Haynes.
The saga continues?
Southeast Financial Credit Union has filed suit against a longtime Indiana customer that has been accused by two states attorneys general of bilking students out of thousands of dollars each for online college preparation study modules. The Indianapolis Star reports that Southeast Financial's complaint against The College Network and related individuals and companies claims the entities are insolvent and that its owners trying to squirrel away any remaining viable assets.
Earlier this year, Southeast Financial — which has lent out about $35 million to College Network customers — was named in a deceptive business practices suit filed by New York's attorney general. Click here for the credit union's complaint against TCN, which was filed last Friday and asks for $12 million and for TCN to placed under the control of a court-appointed receiver.
Southeast Federal, which has had a business relationship with TCN since 2003, said that when the credit union signed a contract extension with TCN last year, it was not made aware that the company was "insolvent, financially weakened by years of dwindling and slow sales and poor business performance."
POSTDATA: WARRANTY DEEDS