MONTGOMERY, Ala. (AP) - Lawsuits have been filed by Colonial Bank employees accusing bank founder Robert Lowder and other officials with causing their retirement fund to lose as much as $50 million.
The lawsuits filed in federal court in Montgomery claim the retirement plan lost millions because of ill-advised investments of most of their retirement contributions in Colonial stock. The value of the company's stock dropped from almost $25 a share in 2007 to less than 10 cents a share with the bank's collapse in August.
The eight lawsuits name as defendants Lowder and other members of the board of directors.
One of the attorneys filing the lawsuits, Joe Whatley of Birmingham, said Friday the purpose of the lawsuits is to help the employees recover their lost savings for retirement.