Opinion ID: 500420
Heading Depth: 3
Heading Rank: 1

Heading: Bank South

Text: 75 As is noted above, issues of scienter are generally poor candidates for summary judgment. In this case, however, we agree with the district court that the evidence adduced against the indenture trustee (Bank South) was insufficient to justify keeping that defendant in the case. Because this complaint does not allege the type of total sham involved in Shores, there is no inference that everybody involved with the issue was involved in the fraud. As to Bank South, there was no allegation or proof of specific misconduct as was alleged in Shores, where the indenture trustee failed in its duty to ensure that the developer maintained sufficient working capital to complete the construction. This bond issue was facially valid, and there is no allegation or proof that Bank South failed in any way in its duty as indenture trustee. Plaintiffs cannot keep the indenture trustee in this case merely by making conclusory allegations of the trustee's knowledge of the fraud.