(By Balaseshan) BancorpSouth Inc. (NYSE:BXS), a financial holding company, said it has reached a settlement in principle of the class action securities litigation entitled Winslow vs. BancorpSouth, et al.
The class action securities litigation was pending in the United States District Court for the Middle District of Tennessee. The settlement is subject to execution of a definitive settlement agreement and court approval.
In this lawsuit, the plaintiff alleged that BancorpSouth and certain of its executives violated federal securities laws by issuing materially false and misleading statements regarding BancorpSouth's business and financial results. Defendants deny all of plaintiff's allegations of wrongdoing.
The parties, including the company's insurance carriers, negotiated the terms of the settlement, with the assistance of a former United States federal district judge acting as a mediator, that they believe are in their respective best interests.
The settlement allows both sides to avoid the potential risks and costs of lengthy litigation. BancorpSouth's insurance carriers would fund the settlement payment, other than an immaterial amount of incidental expenses that BancorpSouth will cover.
Management believes that the settlement will not have a material adverse effect on BancorpSouth's business, consolidated financial position or results of operations.
BXS closed Friday's regular session down 4.74% at $12.85. The stock has been trading between $8.23 and $14.35 for the past 52 weeks.