Summary
PNC Financial Services Group, Inc. has entered into a tentative settlement for consolidated putative class actions pending in the U.S. District Court for the Western District of Pennsylvania. This settlement, outlined in a Memorandum of Understanding dated December 17, 2004, involves PNC, certain current and former executive officers, and AIG Financial Products Corp. The settlement is subject to final documentation, court approval, and other conditions. Notably, PNC and its officers will not contribute any funds to the settlement. Instead, PNC's insurers will contribute $30 million to a Settlement Fund, and AIG Financial Products will contribute $4 million. PNC will also receive $11.25 million from its insurer AISLIC to cover a portion of its claim related to a prior restitution payment, and will pay AIG $2 million to settle other claims arising from the PAGIC transactions. The company anticipates a pretax net income increase of $9.25 million in Q4 2004 from these settlements with AIG entities.
Key Highlights
- 1Tentative settlement reached for consolidated class action lawsuits concerning the PAGIC transactions.
- 2PNC and its current/former officers will not contribute funds to the class action settlement.
- 3Insurers will contribute $30 million to the settlement fund; AIG Financial Products will contribute $4 million.
- 4PNC will receive $11.25 million from insurer AISLIC as a partial settlement of its claim related to a restitution fund payment.
- 5PNC will pay $2 million to AIG Financial Products to settle other claims arising from the PAGIC transactions.
- 6The settlements are expected to result in a pretax net income increase of $9.25 million for PNC in the fourth quarter of 2004.
- 7The settlement also resolves claims related to PNC's Incentive Savings Plan and derivative claims.