Allen Matkins Wins $79.54 Million Judgment for Balboa Capital Founder Patrick Byrne Against Ameris Bank
Judgment follows unanimous jury verdict for whistleblower retaliation, wrongful termination, and unpaid wages; jury's
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IRVINE, Calif., July 28, 2026 (GLOBE NEWSWIRE) — In a sweeping victory for employee rights and corporate accountability, the U.S. District Court for the Central District of California on July 27, 2026, entered final judgment awarding $79,548,170.80 — plus prejudgment and post-judgment interest, costs, and attorneys’ fees — to Patrick Byrne, the founder and former chief executive of Balboa Capital, in his landmark whistleblower retaliation and wrongful termination case against Ameris Bank (NYSE: ABCB).
The judgment follows unanimous jury verdicts returned June 11 and 12, 2026 — with the jury answering every question it reached on the 28-question special verdict form in Byrne’s favor — after a two-week trial before the Honorable Michelle Williams Court. Byrne was represented at trial by Allen Matkins Leck Gamble Mallory & Natsis LLP.
The jury found Ameris Bank liable on every claim presented: wrongful termination in violation of public policy, whistleblower retaliation in violation of California Labor Code section 1102.5, failure to pay all wages due at termination (including waiting-time penalties), and breach of contract relating to Balboa’s Long-Term Cash Incentive Plan (LTIP).
The judgment comprises $16,641,557.80 in compensatory damages and statutory penalties — including approximately $9 million in unpaid LTIP wages and bonuses — and $62,906,613 in punitive damages. On the verdict form, the jury expressly found that Ameris engaged in the conduct “with malice, oppression, or fraud” — the finding California law requires, by clear and convincing evidence, before punitive damages may be awarded. Those sums are exclusive of interest: the judgment separately awards prejudgment interest on the full $9 million past-economic-loss award, at 10 percent per year from the case’s September 16, 2024, filing date, together with post-judgment interest and costs, and authorizes Byrne to move for attorneys’ fees. Following a separate bench phase, the court also entered judgment against Ameris for violating California’s Unfair Competition Law (Bus. & Prof. Code § 17200). The judgment disposes of all claims in the action.
The judgment’s financial impact is already on the bank’s books. In its second-quarter 2026 earnings release, filed July 23, Ameris Bancorp — the bank’s parent company — reported an $82.5 million pre-tax litigation accrual, and executives told analysts the next day that the company had accrued “the full amount of the verdict plus related costs,” citing accounting guidance, even as it said it intends to appeal. The charge reduced Ameris’s reported second-quarter earnings to $0.77 per diluted share, compared with $1.60 per share on an adjusted basis.
The jury heard testimony from senior Ameris executives, including Chief Financial Officer Nicole Stokes and Chief Technology Officer Ross Creasy, as well as former Chief Strategy Officer Jim LaHaise, who retired from the bank effective April 30, 2026. Ameris Chief Legal Officer Jody Spencer attended the entire two-week trial.
Byrne, who founded Balboa Capital in 1988 and sold it to Ameris Bank in December 2021, repeatedly challenged Ameris’s calculation of LTIP performance targets for 2022 and 2023, asserting that the calculations departed from the plan’s express terms and underpaid earned wages to him and more than 140 other Balboa Division employees. He was terminated “without cause” in June 2024, shortly after raising those concerns. The jury found that Byrne’s protected complaints were a substantial motivating reason for his termination.
“This judgment affirms that no one — not even a major bank — can silence employees who speak up about unpaid wages, or manipulate compensation to deprive people of what they earned,” said Byrne. “I raised these concerns not only for myself but for the colleagues who built Balboa with me. This outcome is about holding Ameris accountable for keeping its promises to its employees.”
“The jury saw the evidence clearly and held Ameris Bank fully accountable,” said lead trial attorney Matthew Sessions of Allen Matkins. “This is a stunning damages award, driven by substantial punitive damages that reflect the jury’s finding of malice. It validates our client’s courage to stand up for what is right and the strength of the claims.”
“This case was never about just one plaintiff,” added Stacey Villagomez of Allen Matkins. “Roughly 150 employees transitioned from Balboa Capital to Ameris, and many were potentially affected by the same LTIP practice, resulting in underpaid earned wages. Allen Matkins is preparing additional claims on behalf of other affected individuals.”
In the related action Ameris Bank v. Patrick Byrne, No. 8:26-cv-00393 (C.D. Cal.), filed by the bank in February 2026, the court has dismissed or significantly narrowed key counterclaims, including trade secret misappropriation, violation of California Penal Code section 502, and conversion, and dismissed the bank’s breach of contract claim concerning Byrne’s employment agreement without leave to amend.
Background
Byrne is a veteran of the equipment financing and leasing industry. He founded Balboa Capital in Costa Mesa, California, in 1988 and led it for more than three decades before its sale to Ameris Bank in late 2021, remaining as chief executive of the Balboa Division under an employment agreement that included the LTIP. The case is Byrne v. Ameris Bank, No. 8:24-cv-01989-MWC (JDEx) (C.D. Cal.).
About Allen Matkins
Allen Matkins Leck Gamble Mallory & Natsis LLP is a premier full-service law firm with offices in Los Angeles, Irvine, San Francisco, San Diego, Century City, and New York. Founded in 1977, the firm is recognized for its sophisticated trial practice and its record of results in complex commercial litigation, labor and employment, real estate, corporate transactions, and finance.
Contact: Tim Lineberger (714) 676-4317 or tim@venturestrategic.com
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