Law360, New York (June 18, 2012, 1:24 PM ET) -- A group of officers from defunct Colonial BancGroup Inc. cut a $2.5 million deal Friday to end a consolidated class action accusing them of badly mismanaging the bank's employee retirement plans.
The agreement will put to rest claims that the executives violated the Employment Retirement Income Security Act by buying up the troubled bank's own stock with its employees' pension assets. The employees said Colonial bigwigs knew, or should have known, about questionable practices that eventually brought the bank down.
Colonial filed for bankruptcy in August...
Colonial Bank Execs Pay $2.5M To Dodge ERISA Claims
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