Guaranty Bank & Trust Obtains Judgment Against Former Paris Officers

Rhea-AI Summary

Guaranty Bancshares, under the ticker GNTY, announced a $500,000 Agreed Judgment against former senior officers Jeffrey Nutt and Erik Roddy. The Judgment mandates them to destroy Guaranty's confidential information. The lawsuit, initiated in 2020, accused the former officers of soliciting staff and misappropriating confidential data during their employment. Guaranty's CEO, Ty Abston, stated satisfaction with the Judgment, emphasizing the importance of legal and ethical behavior among officers for competitive integrity.

Positive

• Successful legal resolution with a $500,000 Agreed Judgment enhances company integrity.
• Judgment reinforces the protection of Guaranty's confidential information.

Negative

• The lawsuit indicates potential internal issues with senior officer conduct.
• Allegations of soliciting staff could impact company morale and reputation.

MOUNT PLEASANT, Texas--(BUSINESS WIRE)-- Guaranty Bank & Trust, N.A., today announced that a $500,000.00 Agreed Judgment and Permanent Injunction has been granted in favor of Guaranty Bancshares and its subsidiary, Guaranty Bank & Trust, against two of its former senior-level officers, Jeffrey Nutt (former Market President-Paris) and Erik Roddy (former Senior Vice President- Paris). The Judgment also requires Nutt and Roddy to destroy any remaining documents and electronic data in their possession or control containing Guaranty’s confidential information, including confidential information possessed and used by Roddy after his employment with Guaranty ended.

Guaranty filed suit against Nutt and Roddy in late 2020, alleging that during the time they were employed by Guaranty and serving the bank as senior officers, Nutt and Roddy wrongfully solicited other senior staff at the Paris locations to join them at their new bank and misappropriated the bank’s confidential information to use as part of their new venture.

The Judgment follows a hearing in late 2020, where the District Court entered a temporary injunction against Nutt and Roddy, finding that Guaranty had proven that it was likely to succeed on the merits of its lawsuit.

“Guaranty is satisfied with today’s Judgment and pleased to put this matter behind us and move forward,” said Ty Abston, Guaranty’s CEO. “Guaranty believes strongly in open and vigorous competition but expects officers to act appropriately and to honor their legal and ethical obligations at all times.”

ABOUT GUARANTY BANCSHARES, INC. and GUARANTY BANK & TRUST

Guaranty Bancshares, Inc. is a bank holding company that conducts commercial banking activities through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A. Visit www.gnty.com for more information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006215/en/

Cappy Payne

Senior Executive Vice President & CFO

Guaranty Bancshares, Inc.

1-888-572-9881

investors@gnty.com

Source: Guaranty Bank & Trust, N.A.

FAQ

What was the Agreed Judgment amount for Guaranty Bancshares?

The Agreed Judgment amount was $500,000.

Who were the former officers involved in Guaranty Bancshares' lawsuit?

The former officers involved were Jeffrey Nutt and Erik Roddy.

When did Guaranty Bancshares file the lawsuit against its former officers?

Guaranty Bancshares filed the lawsuit in late 2020.

What was the main allegation against the former officers at Guaranty Bancshares?

The main allegation was that they solicited other senior staff and misappropriated confidential information.

How does the recent Judgment affect Guaranty Bancshares' stock?

The successful Judgment may positively impact investor confidence in Guaranty Bancshares.