Fidelity To Pay $22.5M To Escape TelexFree MDL

Law360 (July 27, 2020, 1:35 PM EDT) -- Fidelity Bank has agreed to pay $22.5 million to resolve allegations it played a role in the massive TelexFree Ponzi scheme and will cooperate with plaintiffs still pursuing claims against other defendants, according to a settlement notice Friday.

In a joint memorandum, Fidelity Co-Operative Bank and a class led by plaintiff Igor Shikhman asked U.S. District Judge Timothy S. Hillman to approve the settlement to end Fidelity's role in a years-long multidistrict suit, which was consolidated in Massachusetts in 2014.

In addition to the eight-figure payout, the deal "also requires the Fidelity Bank defendants to cooperate in connection with plaintiffs' prosecution of...

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