NetBank controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2011
Former-shareholder class action settlement
Former shareholders filed a class action alleging that certain officers and directors inflated the company's stock price through misleading statements. The litigation was settled in November 2011 for $12.5 million.
2007
Bank failure and regulatory closure
Regulators closed NetBank after its losses, funding difficulties, compliance problems, and failed sale process left the institution unable to continue independently.
2006
Underwriting deterioration and loan repurchases
NetBank lowered documentation and underwriting standards to increase loan production, then had to repurchase $182 million in previously sold bad loans. The episode contributed to substantial losses and was part of the institution's wider financial deterioration.