Midlantic Corp. said it has tentatively agreed to pay $6.2 million to settle a shareholder class-action suit which accused the bank's previous chairman and directors of mismanagement.

The suit, filed in March 1990 in New Jersey Federal District Court, said executives at the Edison, N.J.-based bank had not properly reserved for loan losses, had overstated the conservative nature of the bank's credit culture, and had overconcentrated the bank's loan portfolio in real estate.

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