Wilmington Trust Settles ISCO Stock Plan Lawsuit for $5 Million

Wilmington Trust NA will pay $5 million to settle a proposed class action accusing it of improperly approving a $98 million company stock sale to an employee stock ownership plan, according to settlement papers filed in federal court in Delaware.

The deal resolves a lawsuit challenging the M&T Bank Corp. subsidiary’s handling of a stock transaction involving the ISCO Industries Inc. employee stock ownership plan. ISCO employees claimed Wilmington, which served as the stock plan’s trustee, facilitated a deal in which they paid $98 million for ISCO stock that was later valued at only $39 million.

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