Former ICA Creditors Sue for Damages : Thrift: Settlement of fraud suit was against their best interests, plaintiffs say. They want former directors and officers to pay $100 million.

SAN DIEGO — A trust that represents creditors of now-defunct Imperial Corp. of America (ICA), the San Diego-based parent of failed Imperial Savings Assn., is suing former ICA officers and directors for $100 million in damages.

The suit, filed in the U.S. Bankruptcy Court in San Diego, alleges that ICA acted improperly in 1990 by settling a lawsuit that alleged fraudulent behavior by ICA officials. ICA entered bankruptcy proceedings shortly after the suit was settled.

The suit alleges that the $13-million settlement was at odds with the best interests of creditors, who have about $100 million in outstanding claims against ICA. The suit seeks damages from former ICA officials as well as plaintiffs who brought the lawsuit and their attorneys, according to Los Angeles-based attorney Michael Weiss.

“The shareholders were paid substantial amounts of money when the corporation was insolvent,” Weiss said Wednesday. “The settlement breached the fiduciary responsibility that the directors and officers . . . (and shareholders) had to (ICA’s) creditors.”

The suit was filed on behalf of Ronald L. Dirkin, who operates a trust that is overseeing the sale of ICA’s remaining assets.

Federal regulators seized Imperial Savings early in 1990. The thrift was saddled with a hefty junk-bond portfolio and a troubled consumer-loan portfolio. ICA, the failed thrift’s parent company, entered bankruptcy proceedings in March, 1990.

William Lerach, one of the attorneys who represented ICA shareholders in the lawsuit, was not available for comment Wednesday.