A Fulton Financial Corp. subsidiary has settled its lawsuit against Monarch Financial Holdings Inc. in Chesapeake, Va., the companies said Monday.
Resource Bank, a wholly owned subsidiary of the $15.1 billion-asset Fulton, in Lancaster, Pa., filed the suit on June 11 seeking more than $15 million in damages after two senior managers at Resource's mortgage division left the company and took jobs at Monarch. The suit claimed that the two managers violated their employment agreements by encouraging other Resource employees to follow them to Monarch, The Virginia Pilot reported.
At least a dozen other employees went on to leave Resource for positions at the $409 million-asset Monarch.
In a June 13 filing with the Securities and Exchange Commission, Monarch said Resource's case was without merit. But in an SEC filing Monday, Monarch said that the two companies had "reached a settlement in order to avoid further expense, inconvenience, and delay."
Brad Schwartz, Monarch's chief operating officer and chief financial officer, declined to provide details.
The settlement was a condition of Monarch's $2.1 million acquisition of a mortgage office in Maryland and unspecified mortgage-related assets from Resource, which was also announced Monday.
