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Zions updates on Ponzi-liability lawsuits

Zions Bancorp. continues to face suits alleging that it assisted an investment promoter that was an alleged Ponzi scheme, according to the bank's 2017 Form 10-K filed March 1.

The bank has faced a number of suits alleging that it is liable for losses stemming from investors' stakes in International Manufacturing Group, which was a customer of the bank and which the plaintiffs allege was a Ponzi scheme.

One suit, Evans v. CB&T, was a civil class-action lawsuit representing up to 50 investors and was brought in the Eastern District of California in May 2017. The district court dismissed all claims against the bank in the fourth quarter of 2017. On Jan. 17, the plaintiff filed an appeal with the Ninth Circuit court.

Zions also said it is evaluating the potential impact of the new lease accounting guidance on its financial statements, which could change its level of assets that need to be offset with risk-weighted capital. The bank had $245 million minimum in noncancelable operating lease payments that it is evaluating. Its implementation team is working on gathering key lease data elements and will use new lease software to accommodate the accounting requirements.