Arrow Financial’s Leaders Get Initial OK to End Suit Via Reforms

A proposed non-monetary settlement between Arrow Financial Corp.‘s top brass and an investor provides reasonable benefits to the company in the form of internal governance reforms to be implemented for five years, a federal court ruled.

The agreement merits preliminary approval, Judge Anne M. Nardacci said Wednesday for the US District Court for the Northern District of New York.

Investor Stephen Bull’s derivative suit allegations on behalf of Arrow mirror those in a securities class action over the holding company’s financial reporting practices. The suits allege Arrow—the corporate parent of New York state bank and insurance companies—hid paltry financial ...