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U.S. Bank (USB) will have to face a lawsuit alleging that it helped a Ponzi schemer steal hundreds of millions from his clients, a judge ruled Tuesday.
November 7 -
The Commodity Futures Trading Commission has sued U.S. Bank for its role in the Peregrine Financial collapse, alleging that it failed to properly handle the failed brokerage's customer accounts.
June 5 -
Regulators asked a federal court Thursday to reject a bid by U.S. Bank to dismiss a lawsuit over its alleged role in Peregrine Financial's embezzlement scandal.
August 16
U.S. Bancorp has agreed to pay $44.5 million to settle a class-action lawsuit by Peregrine Financial Group customers who lost money in long-running fraud.
The $410 billion-asset company's settlement agreement would resolve claims that U.S. Bancorp allowed Peregrine founder Russell Wasendorf to divert funds to himself using a U.S. Bank account,
A spokesman for U.S. Bank said the settlement would have no impact on the Minneapolis company's second-quarter earnings.
"We are pleased to have reached a resolution regarding Peregrine Financial Group," U.S. Bancorp spokesman Dana Ripley said in a statement emailed to Reuters.
The proposed settlement requires court approval.
The settlement also would result in about 14,000 former Peregrine customers being repaid more than 20% of the money Wasendorf diverted, before attorneys' fees and expenses, the court filing said. They could seek up to 31% of the settlement fund in attorneys' fees.
Wasendorf pleaded guilty to embezzling more than $215 million and is serving a 50-year sentence. Peregrine was a brokerage and futures commission merchant that collapsed in July 2012, after
