Confidential
Settlement – $4,900,000Facts
According to the plaintiff's attorney, long-term executives with a combined 32 years of service sued the defendant bank, their employer, alleging a failure to pay claimed deferred compensation following change of control and termination of the plaintiff's employment. In 1995, the defendant bank entered into an employment agreement with each executive calling for, among other things, a salary continuation plan in the event that an executive either reached normal retirement age to age 65, or there was a "change of control" beforehand.
Settlement Discussions
No formal demand was made by the plaintiff's prior to the commencement of trial although there was an informal indication that the plaintiffs would settle for full payment of their benefits of approximately $3 million and waive claims for fraud and attorneys fees. The defendants offered $700,000 collectively, which was rejected. After two days of trial, the defendant bank agreed to pay $2.95 million to one executive and to enter into immediate negotiations with the other, which ultimately resulted in a payment of $1.95 million to the other plaintiff, for a collective $4.9 million recovery to the plaintiff executives.
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