A federal judge in Chicago has rejected a motion by former Broadway Bank CEO Demetris Giannoulias and other defendants to dismiss a $114 million lawsuit by federal regulators who alleged that reckless lending by the directors and officers doomed the bank to failure.
U.S. District Judge John Grady’s Jan. 16 order allows the case to proceed. Mr. Giannoulias, brother of former Illinois Treasurer Alexi Giannoulias, and the other defendants, including former Chicago Bears quarterback Jim McMahon, who was a bank board member, now will have to file a detailed response to the allegations in the Federal Deposit Insurance Corp.’s complaint.

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