Provident Financial Holdings in Riverside, Calif., will record a nearly $3 million charge in its fiscal first quarter tied to a legal settlement.
The $1.2 billion-asset company disclosed in a regulatory filing Friday that it recently agreed to settle a lawsuit filed in 2015 that accused its bank of not paying for overtime or reimbursing for business costs, among other things.
The settlement needs court approval. Provident’s charge will cover all settlement funds, the class representative enhancement award, settlement administrator's expenses, any employer-side payroll taxes and attorneys' fees.
Provident had not established a legal reserve in advance of the settlement.
“The bank’s decision to settle this matter was the result of the significant legal costs, distraction from day-to-day operating activities and substantial resources that would be required to defend the bank in protracted litigation,” the filing said.
The plan to settle the lawsuit came just four days after the plaintiff’s lawyers informed Provident and the California Labor & Workforce Development Agency that they planned to file a claim “on behalf of all non-exempt employees and covering a variety of alleged wage and hour discriminations,” the filing said.