- Associated Press - Wednesday, July 16, 2014

DOVER, Del. (AP) - Attorneys for former Wilmington Trust employees who invested in the company’s retirement plan have agreed to settle a federal lawsuit for $3 million.

The lawsuit accused Wilmington Trust officials of breaching their fiduciary duties to employees by allowing them to invest in company stock when bank leaders knew Wilmington Trust’s financial position was disintegrating.

According to court filings, the proposed settlement would cover more than 1,800 former Wilmington Trust employees. A judge on Wednesday scheduled a hearing for July 29.

Wilmington Trust was sold to M&T; Bank in 2010 after its deteriorating commercial real estate loan portfolio left it on the verge of collapse.

Federal prosecutors on Tuesday announced the latest in a series of criminal indictments against former Wilmington Trust officials and others related to the bank’s failure.


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