Judge Clears Continental Illinois Executive Charged in Suit
CHICAGO (AP) _ An executive vice president of Continental Illinois National Bank & Trust Co. has been cleared of wrongdoing in reporting the scope of the bank’s problems following the 1982 Penn Square Bank closure, his attorney says.
U.S. District Judge John Grady has dismissed a class-action suit against James D. Harper Jr., head of Continental’s real estate division.
The summary judgment is a ″complete vindication″ for Harper, said his attorney, Richard F. Levy.
Shareholders had contended that Harper and others had tried to conceal from investors the scope of the Continental’s losses stemming from its purchase of loans from Penn Square Bank of Oklahoma City, which was closed in 1982, and other loans.
Harper is the only original defendant still working at Continental.
Grady, in his order Friday, said that there was no evidence to support the allegation that Harper failed to disclose the magnitude of the bank’s problem real estate loans to his superiors.