Barron’s and the Miami Herald reported that TD Bank would pay $170 million. A bank attorney told Judge Jeffrey E. Streitfeld today in state court in Fort Lauderdale, Florida, that a draft settlement was reached and is confidential. The accord is with investors known as the Razorback Group.
“We have settled,” Glenn Goldstein, an attorney for the bank, said. Goldstein and Bill Scherer, attorney for the investors, both told the judge that they believe the settlement is “enforceable,” though it hadn’t been signed. The investors claimed losses of $188 million.
The case was scheduled for trial next week. Razorback’s suit against Gibraltar Private Bank & Trust is still set to go to trial next week. Gibraltar’s attorney argued today that the terms of the TD settlement should be made public. Streitfeld said he expects to rule March 2 on whether it can remain confidential.
“We feel it is in the bank’s best interest to put this matter behind us,” Rebecca Acevedo, a spokeswoman for Toronto- based TD Bank, said in an e-mail.
Rothstein, 49, is a disbarred attorney serving 50 years in prison for a scheme he ran out of his Fort Lauderdale law firm. He sold stakes to investors in fictitious employment- and sex- discrimination cases. Seven other people have been criminally charged.
The case is Razorback Funding LLC v. Rothstein, 09-062943, 17th Judicial Circuit in Broward County (Fort Lauderdale).
To contact the reporters on this story: Susannah Nesmith in Miami at firstname.lastname@example.org; David Voreacos in Newark at email@example.com
To contact the editor responsible for this story: Michael Hytha at firstname.lastname@example.org.