Wilmington Trust, Citigroup Executives Settle Defection Suit

Wilmington Trust Co., the Delaware bank founded by the du Pont family and being bought by M&T Bank Corp. (MTB), settled a lawsuit against three former vice presidents who allegedly defected to Citigroup Inc. (C) with proprietary information.

The parties “agree that this case has been resolved and that this case should be dismissed” without awarding fees or costs to either party under a confidential settlement agreement, Judge J. Travis Laster wrote in an order today in Delaware Chancery Court.

The Wilmington-based bank had claimed the trio, who worked in wealth-management, might pass on information about “client revenue, fee projections, investment strategies” and other competitive data.

The executives -- Barbara McCollum, Robert Rosenberg and Paul Gordon -- should be barred from using information related to former clients in their new jobs, Wilmington Trust contended in the April 1 complaint.

Timothy Holly, an attorney for the three, declined to comment. Mark Costiglio, a spokesman for Citigroup, also declined to comment. Megen Morris, a Wilmington Trust spokeswoman, didn’t immediately return a call seeking comment.

The case is Wilmington Trust Co. v. McCollum, Rosenberg and Gordon, CA6334, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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