Lawsuit filed against TierOne Directors

A former TierOne Bank employee says the people who oversaw the company's retirement plans should have known TierOne Corp. stock was a bad investment long before federal regulators took over the bank and sold its assets last month.

Susan Bredthauer filed a federal lawsuit Wednesday against TierOne's former directors and the company that oversaw the retirement plans, Principal Trust Co. The lawsuit could become a class action.

TierOne had losses in 10 of the last 11 quarters as it struggled under the weight of bad loans, yet the bank's retirement plans held more than 2 million shares of TierOne stock.

The Federal Deposit Insurance Corp. took over Lincoln-based TierOne in early June, and Great Western Bank, of Sioux Falls, S.D., agreed to acquire the bank.