TD Banknorth to pay $50M to settle lawsuit
TD Banknorth on Monday agreed to pay $50 million to settle a class-action lawsuit filed by former shareholders disgruntled over the terms of the Portland-based bank's 2007 buyout by its majority shareholder, Toronto-Dominion Bank.
The TD Banknorth former shareholders sued in Delaware Chancery Court in 2006, alleging that the $3.2 billion Toronto-Dominion paid to purchase 41% of the stock it did not own was too low. The plaintiffs also alleged that the unfair terms of the going-private merger were a result of an unfair process. The merger was completed in April 2007.
The $50 million settlement is much higher than a previously proposed $3 million settlement that a judge rejected in 2007, according to a press release from Coughlin Stoia Geller Rudman & Robbins LLP, the New York law firm representing the plaintiffs.
The settlement is still subject to approval by the court.
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