Lincoln S&L;’s Parent Dropping 1 of 3 Suits
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Under pressure to cut its legal expenses, the bankrupt parent firm of Irvine-based Lincoln Savings & Loan, said Wednesday that it will dismiss one of three lawsuits it has been pursuing against federal regulators.
American Continental Corp. in Phoenix said it will dismiss its $200-million claim against five current and former federal thrift regulators, including Edwin J. Gray, over alleged unauthorized leaks of confidential information that hurt the operations of Irvine-based Lincoln.
Regulators seized Lincoln last April, a day after American Continental filed for bankruptcy protection. The bailout of the insolvent thrift is expected to cost taxpayers $2 billion.
U.S. District Court Judge Richard Bilby, who recently took over the bankruptcy case, had urged American Continental to give up its suit on the alleged leads to preserve its assets.
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