A Federal Judge in Delaware has ruled that the former shareholders of the Wilmington Trust Co. may now pursue their securities fraud lawsuit as a class action. As a consequence of mounting losses the company ended up having to sell itself at a discounted rate to M&T Bank Corp. The suit alleges that the companies officers concealed “several hundred million dollars worth of troubled construction loans and commercial mortgages in 2009 and 2010.” There are currently several different pension funds leading the lawsuit. U.S. District Judge Sue Robinson agreed that the plaintiffs in the case could find a common means of calculating the damages caused by Wilmington’s actions.
See Jonathan Stempel, Wilmington Trust fraud lawsuit is now a class action, Reuters, September 3, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
