Herring

Appellants Morris Herring et al. (“the shareholders”) appeal the summary judgment in favor of the Federal Deposit Insurance Corporation (“FDIC”) in their independent action to set aside a state-court judgment for fraud on the court. We affirm.

I. Factual and Procedural Background

In September 1981, the Arizona Superintendent of Banks placed Southwestern Bank (“Southwestern”) in receivership. On May 1, 1990, the FDIC as court-appointed receiver petitioned the Arizona Superior Court to enter an order approving payment of a final liquidating dividend, payment of interest on claims, sale of any newly discovered assets, disposal of Southwestern’s books and records, and termination of the receivership.

Appellants, a group of Southwestern shareholders, filed objections. The shareholders complained of faulty accounting and insufficient information regarding an alleged $530,124 loss, and requested the court to order a more specific accounting or allow the shareholders leave to examine the receivership records.

After hearings and the filing of post-petition briefs, the Arizona Superior Court overruled the shareholders’ objections. The court held that the disputed item of $530,124…