NEW YORK — Northern Trust Bank of California has agreed to pay $21 million to settle a lawsuit alleging that it charged excessive management fees to 1,300 individuals, charities and others with trust accounts, The Los Angeles Times reported in its Tuesday editions.
The bank's parent, Northern Trust Corp. of Chicago, didn't admit wrongdoing, saying it had acted in good faith and settled to avoid costly litigation. The settlement was approved late Friday by Los Angeles County Superior Court Judge Anthony J. Mohr.
The paper reported that as a trustee, the bank held and managed investments on behalf of beneficiaries. It collected fees based on a percentage of the assets under management in the 300 trusts at issue in the lawsuit. The amount of alleged overcharges varied, but trust beneficiaries are expected to receive settlements averaging about $12,300 each.
