P.M. BRIEFING : R.I. Depositors Sue Governor
A group of Rhode Island depositors sued Gov. Bruce G. Sundlun and a top aide today on the ground that they overstepped their authority in shutting down 45 credit unions and banks on New Year’s Day.
In another legal action, a Rhode Island couple sued the Warwick-based Rhode Island Central Credit Union on the ground that they should be able to use their frozen savings to pay off mortgages.
Both are class action suits, meaning they were filed on behalf of all depositors affected by the current banking crisis.
The suit against Sundlun and his chief of business regulation, Maurice Paradis, went to U.S. District Court and seeks damages against the state, although the amount was not specified. It also asks that Sundlun’s order shutting down the institutions be rescinded so people can get at their money.
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