The stock of Trustmark Corp. declined 8% on news that the company had been hit with a devastating jury award.
The decline began Wednesday, the day the verdict was rendered, when Trustmark shares lost 50 cents, to close at $16.25. Late Monday, the stock closed at $15.375 a share.
The day following the announcement, Trustmark was one of the 40 most actively traded stocks on the Nasdaq. More than 63,800 shares were traded, or five times the average daily volume, according to Dow Jones.
That day, the stock fell another 50 cents, to $15.75. It had traded as high as $17.37 earlier this month. Its 52-week high was $19.75.
Last Friday, however, the shock appeared to be wearing off. In late trading, the stock gained ground and closed at $16 a share on volume of 7,000 shares. The closing bid for the stock was $15.37.
A year ago, Trustmark's shares were trading at an anemic $14.75 but surged until last September, to a high near $20.
The market appeared uncertain as to how to treat the news that the $4.7 billion-asset Mississippi bank holding company had been ordered to pay $38.5 million in punitive damages to a former auto loan customer.
The company has declined to comment on the matter, saying it will appeal the jury's decision. It isn't clear how or when the company's earnings will be affected.
The judgment equals 9% of Trustmark's equity and 70% of its 1994 earnings.
The lawsuit stemmed from a car loan and insurance premium deal in which the customer alleged Trustmark had tacked $9,000 onto the balance of its original $9,227 car loan by charging insurance premiums on a policy the bank bought for the customer without his knowledge.
