8-KOther Events

FIFTH THIRD BANCORP 8-K Report, Corporate Update (Dec 18, 2012)

Filed December 18, 2012For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

This Form 8-K filing from Fifth Third Bancorp (FITB) on December 18, 2012, announces the company's entry into a settlement agreement to resolve a consolidated securities class action lawsuit. The lawsuit, originally filed in June 2008, alleged claims against Fifth Third Bancorp and others. The settlement, which requires court approval, involves Fifth Third and its insurer paying a total of $16 million to establish a settlement fund for class members. Importantly, Fifth Third Bancorp has denied any liability in connection with the claims and has agreed to the settlement to avoid the costs and uncertainties associated with continued litigation. The company stated that the financial impact of this settlement is not considered material to its overall financial condition or results of operations. Investors should note that this filing does not provide updated financial results but addresses a legal contingency.

Key Highlights

  • 1Fifth Third Bancorp entered into a settlement agreement on December 18, 2012, to resolve a securities class action lawsuit.
  • 2The lawsuit, filed in the U.S. District Court for the Southern District of Ohio, was consolidated under the caption Local 295/Local 851 IBT Employer Group Pension Trust and Welfare Fund, et al. v. Fifth Third Bancorp, et al.
  • 3Fifth Third Bancorp and its insurer will collectively pay $16 million to a settlement fund for class members.
  • 4The settlement is subject to court approval.
  • 5Fifth Third Bancorp denies any liability in connection with the claims made in the lawsuit.
  • 6The company agreed to the settlement to avoid potential future litigation costs and uncertainty.
  • 7Fifth Third Bancorp does not consider the settlement's impact to be material to its financial condition or results of operations.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to announce that Fifth Third Bancorp has entered into a settlement agreement to resolve a consolidated securities class action lawsuit that was pending against the company.

Fifth Third Bancorp stated that it does not consider the impact of this $16 million settlement to be material to its financial condition or results of operations. This means the company believes the amount is not significant enough to materially alter its financial standing.

No, Fifth Third Bancorp has explicitly denied any liability in connection with the claims made in the lawsuit. The company agreed to the settlement to avoid the costs and uncertainty of further litigation.

The lawsuit was originally filed on June 19, 2008. The total settlement amount agreed upon is $16 million, to be paid by Fifth Third Bancorp and its insurer.