Lawsuit claims Regions Bank lost $66 million in land deal tied to Nebius data center site
A shareholder of Regions Financial Corporation has filed a derivative lawsuit on behalf of Regions Bank, alleging that bank officers and directors allowed a property designated for a Nebius data center to be sold for $66 million less than its true value. The lawsuit claims collusion and conspiracy among various parties involved in the land deal, which saw the property flipped three times in a single day for a significant profit.
A Regions Financial Corporation shareholder, James M. Anderson, has filed a derivative lawsuit in Jefferson County Circuit Court on behalf of Regions Bank. The complaint alleges that Regions Bank officers and directors facilitated the sale of the former Regions Lakeshore Operations Center at 201 Milan Parkway for tens of millions less than its market value. The property is currently being developed by Nebius into an AI factory data center.
The lawsuit details a series of three transactions on a single day, September 30, 2025, where the property was first sold by Regions Bank to Lakeshore Data Center, LLC for $17.2 million, then by Lakeshore Data Center, LLC to 201 Milan Birmingham, LLC for $27 million, and finally by 201 Milan Birmingham, LLC to Alabama ADC Holdings, LLC for $83.5 million. Anderson claims this sequence of sales resulted in a $66 million loss for Regions Bank and suggests collusion and conspiracy among Regions' management, Lakeshore, Milan, Nebius, and ADC Holdings, pointing to the same law firm preparing the first and final sales.
Anderson initiated the lawsuit after Regions Financial Corporation's management failed to take action following his formal request to pursue legal action against officers and directors. Named defendants include Paul Stivender, a Regions Bank senior vice president; Mark A. Crosswhite, a Regions director; Lakeshore Data Center, LLC; Robert O. Burton; Milan Birmingham LLC; Alabama ADC Holdings, LLC; Nebius; and Kari Schrader, among other unnamed "fictitious defendants." Regions Bank declined to comment on the pending litigation, stating they look forward to addressing the matter legally. Separately, Oxmoor Valley homeowners are also suing to block the data center's construction, challenging the inflated land cost based on the same property sales.