NEW BRUNSWICK, N.J. — A "whistle-blower" lawsuit has been filed here that seeks to halt merger merger discussions between a credit union that serves Rutgers students and alumni and another that serves university employees.
The suit, filed in Superior Court's Chancery Division in Middlesex County by administrator Aimee Becker of the Rutgers University Student and Alumni FCU, and RUSAFCU and member Stanley D. Bozin, alleges there are conflicts of interest involved that should prevent the board from voting on the merger.
The plaintiffs are asking the court to throw out the plan by RUSAFCU to merge with Rutgers Federal Credit Union and to block a vote on the merger. The suit, which claims membership will be hurt by any such merger, alleges that two of the four RUSFCU board members who voted to approve a decision to pursue the merger, are unqualified to hold board seats, while two other board members should have recused themselves from voting because the companies they work for stand to profit from a merger.
Local media reports indicated both sides have entered into a settlement discussion. The letter of intent signed by the two CUs indicates plans call for the merger to be completed by Dec. 31, with Rutgers University FCU to be the surviving name.
