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Rural Utility Cooperative Law Blog

Cooperatives’ Capital Credit Accounts Viewed as Lucrative Targets for Class Action Litigation

Several electric cooperatives throughout the country have been the subject of class action lawsuits targeting their unretired capital credits. The lawsuits were filed by one or more members or former members against the cooperative and, in some instances, against directors and management. In this blog post, we discuss one non-legal measure to avoid such lawsuits and bolster coopertives’ defenses. We recommend education of cooperative management, employees, directors, and especially members.

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