DOVER, Del. – Wilmington Trust has agreed to a $210 million cash settlement of a shareholder lawsuit alleging that the bank fraudulently concealed billions of dollars in bad loans.
Plaintiffs lawyers filed court papers late last week the question of a federal judge’s approval of the proposed settlement, which calls for Wilmington Trust to pay $200 million and accounting firm KPMG will pay $10 million.
Lawyers say the settlement is the result of eight years of hard-fought disputes.
The proposed settlement comes just three weeks after four former Wilmington Trust executives were convicted on federal fraud and conspiracy charges.
The criminal case and the civil lawsuit both claimed that bank officials misled regulators and investors about Wilmington Trust enormous amount of past-due commercial real estate loans for the century-old institution was hastily sold in 2011.