Bankplus Wealth Management, Llc

Allegations: RECEIVERSHIP ESTATE CLAIMS DEFENDANTS ARE LIABLE FOR DEBTS OF RECEIVERSHIP ESTATE BASED ON ASSISTANCE PROVIDED BY DEFENDANTS TO ARTHUR LAMAR ADAMS AND MADISON TIMBER PROPERTIES, LLC IN CARRYING OUT PONZI SCHEME. Status: Final Summary: ON MARCH 20, 2019, A COMPLAINT (THE "COMPLAINT"), MILLS V. BANKPLUS, ET AL., CASE #3:19-CV-00196-CWR-FKB, WAS FILED IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI, NORTHERN DIVISION, BY ALYSSON MILLS, IN HER CAPACITY AS COURT-APPOINTED RECEIVER FOR ARTHUR LAMAR ADAMS ("ADAMS") AND MADISON TIMBER PROPERTIES, LLC ("MADISON TIMBER"), NAMING BANKPLUS, THREE FORMER BANKPLUS EMPLOYEES, ONE THEN-CURRENT BANKPLUS EMPLOYEE AND OTHER DEFENDANTS, INCLUDING DEFENDANTS AFFILIATED AND UNAFFILIATED WITH BANKPLUS ("DEFENDANTS"). THE COMPLAINT SEEKS TO RECOVER DAMAGES FROM THE DEFENDANTS FOR THE BENEFIT OF THE RECEIVERSHIP ESTATE RELATED TO CERTAIN INVESTORS WHO WERE ALLEGEDLY DEFRAUDED BY ADAMS AND MADISON TIMBER, WHOSE ACTIONS WERE ALLEGEDLY ATTRIBUTABLE TO THE ACTIONS OF THE DEFENDANTS THAT ALLEGEDLY ENABLED NEGLIGENT, ILLEGAL OR FRAUDULENT ACTIVITIES ENGAGED IN BY ADAMS AND MADISON TIMBER. A BRIEF DESCRIPTION OF THE CAUSE OF ACTION ON THE COVER SHEET FILED WITH THE COMPLAINT INCLUDES SECURITIES, CIVIL CONSPIRACY, AIDING AND ABETTING, NEGLIGENCE, AND OTHER POSSIBLE CAUSES OF ACTION. THE AMOUNT OF DAMAGES (INCLUDING PUNITIVE DAMAGES) REQUESTED AGAINST THE DEFENDANTS IN THE COMPLAINT IS UNSPECIFIED. BANKPLUS HADN'T ACQUIRED BANKPLUS WEALTH MANAGEMENT LLC ("BPWM") AT THE TIME OF THE ALLEGED INITIAL MISCONDUCT AND NONE OF THAT OR LATER ALLEGED MISCONDUCT TOOK PLACE AT BPWM OR INVOLVED ANY OF ITS REGISTERED ASSOCIATED PERSONS OR OTHER BPWM EMPLOYEES. ON SEPTEMBER 28, 2023, BANCPLUS CORPORATION, THE PARENT COMPANY OF BANKPLUS, ANNOUNCED THAT BANKPLUS HAD AGREED IN PRINCIPLE TO A SETTLEMENT AGREEMENT (THE "AGREEMENT") RELATING TO THE COMPLAINT. PURSUANT TO THE AGREEMENT, THE COMPLAINT WILL BE DISMISSED WITH PREJUDICE AND THE RECEIVER WILL FULLY RELEASE ALL CLAIMS AGAINST THE DEFENDANTS, AND ALL PARTIES WILL SEEK THE COURT'S ENTRY OF A BAR ORDER PROHIBITING ANY CONTINUED OR FUTURE CLAIMS BY ANYONE AGAINST THE DEFENDANTS RELATING TO THE COMPLAINT, WHETHER ASSERTED TO DATE OR NOT. FINAL COURT APPROVAL OF A BAR ORDER IS A CONDITION OF THE AGREEMENT. ON OCTOBER 9, 2023, THE PARTIES EXECUTED THE AGREEMENT AND THE RECEIVER FILED HER MOTION FOR APPROVAL OF THE SETTLEMENT WHICH THE COURT APPROVED ON NOVEMBER 14, 2023. ON JANUARY 29, 2024, THE RECEIVER FILED A MOTION TO DISMISS HER CLAIMS WITH PREJUDICE WHICH THE COURT GRANTED ON JANUARY 30, 2024. PURSUANT TO THE AGREEMENT, A ONE-TIME CASH PAYMENT (THE "JOINT SETTLEMENT") WAS MADE TO THE RECEIVER IN JANUARY 2024. BANCPLUS EXPRESSLY DENIES ANY ADMISSION OF LIABILITY OR WRONGDOING IN CONNECTION WITH THE COMPLAINT OR BY ASSENTING TO THE AGREEMENT. BANCPLUS BELIEVES THAT IT IS IN THE BEST INTEREST OF THE COMPANY AND ITS SHAREHOLDERS TO ENTER INTO THE AGREEMENT, TO REDUCE THE RISKS AND COSTS OF CONTINUING LITIGATION.