Republic Bancorp in Louisville, Ky., and Green Dot have settled a dispute over a terminated acquisition.
The $6.3 billion-asset Republic disclosed in a regulatory filing that the parties entered into a settlement agreement on June 2 to resolve a lawsuit the bank filed against the fintech in the Delaware Court of Chancery.
Green Dot agreed to pay Republic $13 million on top of the $5 million termination fee it paid the bank in the first quarter. Republic agreed to dismiss the lawsuit.
Republic filed its lawsuit last October after Green Dot was unable to follow through on a May 2021 agreement to buy the bank’s tax refund solutions business.
Green Dot was unable to secure approval from the Federal Reserve. Republic claimed that the prepaid card issuer never disclosed any concerns about getting regulatory approval.