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Huntington nears settlements, lowers loss estimate in excess of legal reserves

Huntington Bancshares Inc. is close to settling two lawsuits, and estimates a possible loss of up to $55 million in excess of legal reserves, as of Dec. 31, 2017.

A year ago, it had estimated a loss of up to $65 million in excess of reserves.

The $104.19 billion, Columbus, Ohio-based company on Jan. 31 reached an agreement in principle with the bankruptcy trustee in a case involving former client Cyberco Holdings Inc. Cyberco allegedly defrauded lenders, including Huntington National Bank, in the financing of computer equipment purchases from Teleservices Group Inc. Teleservices turned out to be a shell company; both Cyberco and Teleservices underwent bankruptcy proceedings.

Huntington additionally reached an agreement in principle with the plaintiffs in an October 2013 class-action lawsuit. That case is in connection with late fees on mortgage loans, which plaintiffs allege were imposed in violation of West Virginia law and of loan documents. The parties are now working on a written settlement agreement, following oral arguments in October 2017.