Our law firm is filing potential claims on behalf of shareholders of Wilmington Trust (NYSE: WL) over possible violations of US securities laws.
Did you own Wilmington Trust (NYSE: WL) stock between 01/18/2008 and 11/01/2010? If so, you may be entitled to compensation,
Call 1-800-934-2921 or complete the form on this page for a free consultation.
The DuPont family bank in Delaware was over 100 years old when it met its demise in 2011. The past year has seen four Wilmington Trust (NYSE: WL) executives convicted on criminal charges and fines of $60 million ordered by the federal government.
Shareholders and authorities say the bank was guilty of a scheme to hide hundreds of millions of dollars of loans for toxic commercial real estate during the worst times in the Great Recession. It’s possible that the list of consequences will continue to grow if the $210 million shareholder settlement is approved by a judge.
Court documents were filed on Friday, and the settlement means that people who purchased stock in Wilmington Trust from the period from January 18th, 2008 to November 1st, 2010 could receive reimbursement for up to 40 percent of what they lost. Between those dates, the bank raised a whopping $287 million from investors to modify their balance sheet. When the losses from the loans were publicized, the bank collapsed. That day executives received bonuses while shareholders saw their stock plummet by 46 percent in only one day.
M&T Bank, based in Buffalo, NY, bought the name Wilmington Trust and all their assets at a significantly discounted rate while 600 employees for the company lost their jobs. A Delaware judge combined multiple suits from shareholders into a class action suit, with the primary plaintiffs being pensions for fire and police departments.
The complaint states Wilmington Trust’s top-level employees and executives fraudulently modified the loan-loss reserves and then extended more than $1.74 billion in loans that were past-due or mature. Their actions were an attempt to conceal their failing financial condition, allege the shareholders.
Judge Eduardo C. Robreno will determine whether to accept the settlement terms or not, instead of a magistrate, according to a docket notice on Tuesday. The conditions include $10 million from KPMG, the bank’s auditor, and $200 million in cash payments from M&T. They say they’re entering the settlement due to actions before they acquired the name.
Former bank president Robert Harra Jr, former chief credit officer, William North, and former finance chief, David Gibson, and former controller, Kevyn Rakowski are likely to receive prison sentences. CEO Ted Cecala did not receive criminal charges.
Settlement of Wilmington Trust (NYSE: WL) Shareholder Lawsuit
Wilmington Trust (NYSE: WL) investors may be able to collect significant financial compensation for their losses. The recent settlement with the company has set aside hundreds of millions of dollars for compensating shareholders.
Sell shares of Wilmington Trust (NYSE: WL) ? Wilmington Trust (NYSE: WL) Shareholder Lawsuit Settlement. Contact us to protect your rights.
If you owned Wilmington Trust (NYSE: WL) stock between 01/18/2008 and 11/01/2010, complete the form on this page or call 1-800-934-2921 right now to protect your rights.