The Bank Slate


Heritage Commerce discloses $4M legal settlement

Heritage Commerce in San Jose, Calif., has set aside $4 million to cover a legal settlement.

The $5 billion-asset company said in a regulatory filing Wednesday that the settlement addresses claims its bank was negligent in handling, supervising and managing depository accounts for DC Solar debtors and related investment funds. 

The settlement must be approved by the bankruptcy court.

Heritage Commerce said the settlement will run through noninterest expenses for the second quarter and that it will pursue reimbursement from its insurance carriers.

DC Solar filed for bankruptcy protection in February 2019. Heritage Commerce disclosed a month later that its bank had two unsecured commercial real estate loans, with a total balance of $3.3 million, to entities affiliated with the company.

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