First Union National Bank has agreed to settle the securities class action suit against the company, based on its alleged participation in a securities fraud commited by Cyprus Funds, for $5 million. According to an article in the Sun-Sentinel, the settlement was reached after two days of testimony in a federal jury trial in Fort Lauderdale.
Quote of note: “Legal experts say the case against First Union was unusual because it resulted in a jury trial. While ‘third parties’ such as banks or law firms sometimes are sued in connection with securities fraud cases, usually such matters are settled out of court or dropped.”
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