Blue Ridge Bankshares in Charlottesville, Va., is looking to resolve a longstanding lawsuit filed by former employees of a processor bank.
The $3.3 billion-asset company has offered to pay $6 million to settle claims that executives at Virginia Community Bank breached their fiduciary obligations by improperly using an employee pension fund. Blue Ridge bought Virginia Community in December 2019.
The lawsuit, filed in U.S. District Court for the Western District of Virginia in 2019, alleged that Virginia Community used funds to repurchase stock at an inflated value before the 2008 financial crisis.
Blue Ridge would not admit or deny wrongdoing by Virginia Community as part of the proposed settlement, according to the Richmond Times-Dispatch.
Blue Ridge, which is operating under a regulatory order and hired a new CEO last year, recently reached an agreement to raise capital.