Carter Bankshares suit with Justice family dismissed

Rhea-AI Filing Summary

Carter Bankshares, Inc. and its wholly owned subsidiary Carter Bank & Trust announced that a lawsuit in the Circuit Court of Greenbrier County, West Virginia brought by James C. Justice, II, members of his family, and related entities has been voluntarily dismissed with prejudice as of August 17, 2026.

“With prejudice” means the dismissal is final as to those claims in that court. The disclosure does not describe the underlying allegations or any financial terms, focusing solely on the procedural resolution of the case.

Positive

• Lawsuit by the Justice Parties has been voluntarily dismissed with prejudice, removing an outstanding legal proceeding.
• Dismissal with prejudice on August 17, 2026 reduces ongoing litigation uncertainty for Carter Bankshares, Inc.

Negative

• None.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Key Figures

Event date: August 17, 2026 Par value per share: $1.00 Commission file number: 001-39731

3 metrics

Event date August 17, 2026 Date the company announced the lawsuit was voluntarily dismissed with prejudice

Par value per share $1.00 Par value of Carter Bankshares, Inc. common stock

Commission file number 001-39731 SEC registration file number for Carter Bankshares, Inc.

Key Terms

dismissed with prejudice, wholly-owned subsidiary, Emerging growth company, Section 12(b)

4 terms

dismissed with prejudice regulatory

"has been voluntarily dismissed with prejudice"

A court decision that ends a lawsuit permanently and prevents the same claim from being filed again. For investors, a dismissal with prejudice removes a legal cloud over a company’s finances or operations, reducing the risk of future litigation on that issue much like closing a chapter in a book so it can’t be reopened; it can affect a company’s liability estimates, stock risk profile, and investor confidence.

wholly-owned subsidiary financial

"the Company and its wholly-owned subsidiary, Carter Bank & Trust"

A wholly-owned subsidiary is a company whose entire ownership is held by another company, called the parent, so the parent controls all shares, board appointments and major decisions. For investors this matters because the subsidiary’s profits, losses, assets and liabilities are treated as part of the parent’s financial picture, affecting valuation and risk exposure — imagine a parent owning a single storefront outright and consolidating its receipts and bills into the parent’s books.

Emerging growth company regulatory

"Emerging growth company"

An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.

Section 12(b) regulatory

"Securities registered pursuant to Section 12(b) of the Act"

Section 12(b) of the U.S. Securities Exchange Act requires securities listed on a national stock exchange to be registered with the U.S. Securities and Exchange Commission (SEC) and to follow regular public reporting and disclosure rules. For investors, a 12(b) listing generally means more routine financial updates, regulatory oversight and easier buying and selling—like a storefront that must display its inventory and prices, making it simpler to inspect and trade the product.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What legal update did Carter Bankshares, Inc. (CARE) disclose on August 17, 2026?

Carter Bankshares, Inc. disclosed that a lawsuit involving the company, Carter Bank & Trust, and the Justice Parties was voluntarily dismissed with prejudice on August 17, 2026. The disclosure focuses on the dismissal and does not describe any underlying claims or settlement terms.

Who were the Justice Parties in the dismissed lawsuit against Carter Bankshares, Inc. (CARE)?

The Justice Parties were James C. Justice, II, his son James C. Justice, III, his daughter Jillean L. Justice, and various related entities they own or in which they have an investment. The case was pending in Greenbrier County, West Virginia.

What does “dismissed with prejudice” mean for the Carter Bankshares, Inc. (CARE) lawsuit?

“Dismissed with prejudice” means the lawsuit’s claims are finally dismissed and cannot be refiled in that court. For Carter Bankshares, Inc., this indicates a procedural end to that particular case, reducing ongoing litigation exposure tied to those specific claims.

Which subsidiaries of Carter Bankshares, Inc. (CARE) were involved in the dismissed lawsuit?

The lawsuit named Carter Bankshares, Inc. and its wholly owned subsidiary Carter Bank & Trust, along with certain other unaffiliated persons and entities. Both the company and the bank are included in the notice that the case was voluntarily dismissed with prejudice.

Did Carter Bankshares, Inc. (CARE) disclose any financial impact from the lawsuit’s dismissal?

The company did not disclose any financial terms or monetary impact related to the dismissal. The disclosure is limited to stating that the lawsuit brought by the Justice Parties in Greenbrier County, West Virginia, was voluntarily dismissed with prejudice on August 17, 2026.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 08/17/2026 - 04:59 PM Accepted by SEC EDGAR 08/17/2026 - 04:59 PM Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 17, 2026

CARTER BANKSHARES, INC.

(Exact name of registrant as specified in its charter)

Virginia			001-39731			85-3365661
(State or other jurisdiction of incorporation)			(Commission file number)			(IRS Employer Identification No.)

1300 Kings Mountain Road, Martinsville, Virginia 24112

(Address of Principal Executive Offices) (Zip Code)

(276) 656-1776

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $1.00 par value			CARE			NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 8.01. Other Events.

On August 17, 2026, Carter Bankshares, Inc. (the “Company”) and its wholly-owned subsidiary, Carter Bank & Trust (the “Bank”), announced that the lawsuit filed against the Company and the Bank (along with certain other unaffiliated persons and entities) in the Circuit Court of Greenbrier County, West Virginia, by James C. Justice, II, his son James C. Justice, III, his daughter Jillean L. Justice, and various related entities that he and/or they own or in which they have an investment (collectively, the “Justice Parties”), has been voluntarily dismissed with prejudice.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CARTER BANKSHARES, INC.

(Registrant)

Date: August 17, 2026			By:			/s/ Wendy S. Bell
			Name:			Wendy S. Bell
			Title:			Chief Financial Officer

1

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