Trustmark in Jackson, Miss., will recognize a $100 million litigation settlement expense in the fourth quarter after settling longstanding litigation involving Stanford Financial Group.
The $17.2 billion-asset Trustmark said the settlement is tied to a lawsuit that was initially filed in August 2009 in the District Court of Harris County, Texas. Trustmark did not admit or deny wrongdoing in connection with the settlement.
Trustmark said it determined that it is in the best interest of the company and its investors “to enter into the settlement to eliminate the risk, ongoing expense, uncertainty as to ultimate outcome and imposition on management and the business of Trustmark.”
The lawsuit, which named Trustmark and four other financial institutions, had sought to recover alleged fraudulent transfers and damages. The lawsuit alleged that Trustmark and the other defendents “knew or should have known the Stanford Financial Group was conducting an illegal and fraudulent scheme.”