Trustmark in Jackson, Miss., will set aside $6.5 million in the third quarter to cover the potential resolution of a nearly four-year-old legal matter.
The $18.4 billion-asset company disclosed in a regulatory filing that it has reached a settlement with the court-appointed receiver for Madison Timber Properties and Arthur Lamar Adams.
The receiver filed a lawsuit in December 2019 in U.S. District Court for the Southern District of Mississippi alleging that Trustmark facilitated or enabled illegal and fraudulent activities engaged in by Adams and Madison Timber.
The settlement, which needs court approval, would release Trustmark from all legal claims. Trustmark agreed to make a one-time cash payment of $6.5 million.
“Trustmark makes no admission of liability or wrongdoing in connection with Adams/Madison Timber, and the settlement agreement will so provide,” the filing said, adding that the settlement is intended to eliminate the risks and costs of continuing litigation.
Trustmark asserted in the filing that its “proactive communications” with law enforcement agencies led to “the discovery and termination of Adams/Madison Timber’s criminality.”