Carter Bankshares Reports Lawsuit Dismissal With Prejudice

What Happened

• On August 17, 2026, Carter Bankshares, Inc. and its wholly‑owned subsidiary Carter Bank & Trust announced that the lawsuit filed against them in the Circuit Court of Greenbrier County, West Virginia by James C. Justice, II, James C. Justice, III, Jillean L. Justice and related entities (the “Justice Parties”) has been voluntarily dismissed with prejudice.

Key Details

• Date of disclosure: August 17, 2026 (reported in an 8‑K, Item 8.01).
• Court: Circuit Court of Greenbrier County, West Virginia.
• Parties: Plaintiffs — James C. Justice, II; James C. Justice, III; Jillean L. Justice; various related entities. Defendants — Carter Bankshares, Inc., Carter Bank & Trust, and certain other unaffiliated persons/entities.
• Outcome: Dismissal with prejudice (claims cannot be refiled against the defendants on the same grounds).

Why It Matters

• A dismissal with prejudice removes this pending legal claim and the related legal uncertainty for the company; it eliminates the specific claims in this suit from being refiled. The 8‑K does not report any settlement amount, change to reserves, or admission of liability. Investors should note the reduced litigation risk tied to this particular case and watch future filings for any related financial disclosures.