A federal judge denied a motion to dismiss a $12 million class-action lawsuit against Virginia Community Bank.
The lawsuit, filed in August 2019, alleges the bank, its holding company and four other defendants fraudulently inflated stock prices for personal financial gain and saddled employees who participated in the company’s retirement plan with unnecessary debt.
Virginia Community Bank merged with Blue Ridge Bank in December 2019. The latter bank is not named in the lawsuit.
Janice Moore, a former branch manager for Virginia Community Bank, is the lead plaintiff in the case.
It is unclear at this time whether the lawsuit will go to trial or be settled out of court. Future court dates have not been set.
If the lawsuit is successful, it may impact up to 90 current and former employees who participated in the bank’s retirement stock program.