(Toronto) TD Bank Group said Monday it will pay US$1.205 billion to settle a lawsuit related to a multi-year investment pyramid scheme operated by Stanford Financial Group.
According to the details of the agreement, TD has reached an agreement with the receiver, the Official Stanford Investors Committee and other plaintiffs in the litigation.
TD, which primarily provided correspondent banking services to Stanford International Bank, denied any liability or wrongdoing and maintained that it acted properly at all times.
The bank says it chose to settle the case to avoid the distraction and uncertainty of continuing a lengthy legal process.
TD is due to release its first-quarter results on Thursday.
Following the settlement, the bank says it will record a provision of approximately $1.2 billion after tax to its results for the first quarter of fiscal 2023.
Company in this story: (TSX: TD)