By Joy Juedes Staff Writer
Posted: 01/28/2011 11:51:17 AM PST

REDLANDS – Fourteen former directors and officers of 1st Centennial Bank have about two months to respond to a lawsuit filed against them by the Federal Deposit Insurance Corp.

One of the Los Angeles-based lawyers representing the former directors and officers of the Redlands-based bank wrote in an e-mail Thursday that the group must respond by March 22.

“We expect that we will file a motion to dismiss the entire lawsuit,” Mark McDonald wrote.

McDonald’s firm, Morrison & Foerester, called the claims “unfounded, unfair and based solely on hindsight.”

“Just as the FDIC and numerous sophisticated market participants failed accurately to forecast the extent of the housing crash, so too were the directors and officers of 1st Centennial unable to predict the unprecedented plunge in housing prices in the Inland Empire that led to the Bank’s failure,” a statement from the firm said.

The complaint, filed Jan. 14 in the U.S. District Court in Los Angeles, is FDIC v. James R. Appleton, 11-476.

The former officers and directors were sued for alleged negligence by the FDIC. 1st Centennial Bank was shut down in January 2009 and the FDIC was named receiver.

To read entire story, click here.