DOVER, Del. – Wilmington Trust has agreed to a $210 million cash settlement in a shareholder lawsuit alleging that the bank fraudulently concealed billions of dollars in bad loans.
Plaintiffs' attorneys filed court papers late last week asking a federal judge to approve the proposed settlement, which calls for Wilmington Trust to pay $200 million and auditing firm KPMG to pay $10 million.
Attorneys say the settlement is the result of eight years of hard-fought litigation.
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 civil lawsuit both alleged that bank officials misled regulators and investors about Wilmington Trust's massive amount of past-due commercial real estate loans before the century-old institution was hastily sold in 2011.
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