WSFS Financial agrees to settlement with Universitas for $12M
WSFS Financial today that it has entered into a settlement agreement with Universitas Education to resolve claims related to services provided by Christiana Bank & Trust prior to WSFS' acquisition of Christiana Trust in December 2010. The claims relate to Christiana Trust's role as "insurance trustee" of the Charter Oak Trust Welfare Benefit Plan , and Universitas' alleged loss after funds from certain life insurance benefits were misappropriated by certain individuals unaffiliated with Christiana Trust or WSFS. Universitas sought damages in excess of $54M. WSFS settled the case for $12M to avoid the uncertainties of arbitration and to end the expense of ongoing litigation. Separately, WSFS will pursue all of its rights and remedies to recover this settlement payment and all related costs, including by enforcing the indemnity right in the 2010 Stock Purchase Agreement by which WSFS acquired Christiana Trust. Additionally, WSFS has already taken measures to recover expenses from various insurance carriers. WSFS intends to pursue all claims it has for full restitution for this settlement.The settlement for $12M requires WSFS to update its previously reported fourth quarter 2017 earnings, reducing reported after-tax earnings by approximately $9.3M, or 29c per share for the fourth quarter.