Legal Alert: Patronage Capital Case Dismissed
Posted on Mar 7, 2018 in Uncategorized | Comments Off on Legal Alert: Patronage Capital Case Dismissed
A federal court in Pennsylvania has dismissed a putative class action against REA Energy Cooperative seeking the return of approximately $53 million in patronage capital. The court found that state law and the cooperative’s bylaws allowed the board of directors to determine when patronage capital would be returned to members. The court rejected the plaintiffs’ attempts to limit the board’s discretion in determining when to return patronage capital. The court found that the plaintiffs had not alleged justifiable reliance on any statements by the cooperative. View the full legal alert.
