Regions Financial Agrees to Pay $22.5 Million to Settle ERISA Stock-Drop Litigation

According to a December 18, 2013 motion for preliminary approval, Regions Financial Corp. has agreed to pay $22.5 million to settle an ERISA stock-drop litigation pending in the Western District of Tennessee. Plaintiffs alleged that defendants, which included members of the plan investment committees, among others, imprudently retained Regions Financial stock as an employee retirement plan option despite risky loan practices that utilized subprime mortgages and other “exotic” loan products. Hamby v. Morgan Asset Management, Inc., No. 2:08-cv-02192 (W.D. Tenn.).

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