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Banc of California settles Seabold's wrongful termination suit

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Banc of California settles Seabold's wrongful termination suit

Banc of California Inc. and former Executive Vice President Jeffrey Seabold on Feb. 14 reached a final settlement in connection with the latter's wrongful termination lawsuit.

Seabold had sought more than $5 million in damages when he filed the case in September 2017. Under the accord, he will receive a lump sum of $4.3 million but is also temporarily restricted from beneficially owning 5% or more of the company's outstanding common stock, soliciting proxies in opposition to the board's own recommendations or initiating stockholder proposals.

The Santa Ana, Calif.-based company does not expect the terms of the accord to have a material adverse effect on its financial condition, results of operations or liquidity.

Banc of California in an annual regulatory filing also disclosed updates regarding court proceedings involving COR Securities Holdings Inc. and former Chief of Staff Carlos Salas. A court on Feb. 2 granted in part Banc of California NA's motion to dismiss the August 2017 suit by COR Securities and COR Clearing LLC. A court on Jan. 17 granted Banc of California's motion to compel arbitration in the August 2017 case brought by Salas.

The COR entities allege that the bank inappropriately gained access to confidential documents on a cloud storage site, violating statutes related to computer fraud and abuse, as well as engaging in common law fraud.

Salas is accusing the defendants of wrongful termination, among other violations. He is seeking damages of more than $4 million.

Banc of California believes both actions are without merit and plans to "vigorously contest" them.