Podcasts & RSS Feeds
Most Active Stories
- This ballot proposal is critical to Michigan's economy, but most people won't bother to vote on it
- What explains Michigan's large Arab American community?
- Some think their immigrant ancestors were the last that should be allowed in the U.S.
- Michigan Republican Party's tactics remind me of Watergate, because both were unnecessary
- Michigan's campaign for governor gets weird as Republicans deploy spyglasses
Tue July 24, 2012
Federal court reinstates lawsuit over Flagstar stock
Some current and former employees will get another chance to pursue a lawsuit against Flagstar Bank over company stock in their retirement accounts.
A federal appeals court has reinstated the case in Detroit federal court. The Troy-based bank is blamed for offering Flagstar stock to employees at a time when the bank was in perilous shape.
Flagstar's stock price lately has been under a dollar, compared with nearly $15 in 2007. The court says the lawsuit raises a "plausible claim" that Flagstar breached its fiduciary duty to employees during that time.
The bank has said workers made their own investment decisions.
Flagstar recently announced its first profitable quarter since 2008. It has 111 branches in Michigan.