WSFS Financial Corp. is paying $12.0 million to settle claims relating to a bank it acquired in 2010.
Universitas Education LLC had sought damages of more than $54.0 million, saying it suffered losses after funds from certain life insurance benefits were misappropriated. Christiana Bank & Trust Co., which WSFS eventually acquired, was insurance trustee; it was unaffiliated with those who reportedly misappropriated funds.
Wilmington, Del.-based WSFS said the settlement would allow it to end the expense of ongoing litigation. It intends to recover the amount paid out from insurance carriers and to enforce the indemnity right included in its merger terms with Christiana.
The settlement, however, resulted in adjustments to the company's fourth-quarter 2017 earnings report. Earnings decreased by approximately $9.3 million or 29 cents per share, after tax.