Hearing set to consider proposed Wilmington Trust settlement

(AP) — A federal judge has scheduled a hearing on a motion to approve a proposed $210 million cash settlement in a shareholder lawsuit alleging that Wilmington Trust fraudulently concealed billions of dollars in bad loans.

The judge will hold a July 2 hearing in Philadelphia regarding a request by plaintiffs’ attorneys for preliminary approval of the settlement and approval of notices being sent to plaintiffs in the class-action lawsuit.

The proposed settlement calls for Wilmington Trust to pay $200 million and auditing firm KPMG to pay $10 million.

Consideration of the settlement comes as four former Wilmington Trust executives challenge their convictions on fraud and conspiracy charges in a separate criminal case.

Both cases allege that bank officials misled regulators and investors before the century-old institution was hastily sold in 2011.