WILMINGTON, DE — WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, announced that it recently finalized a settlement to resolve litigation against the counterparty to the 2010 stock purchase agreement by which WSFS purchased Christiana Bank & Trust Company (Christiana Trust). WSFS will receive $15 million under the settlement and anticipates a positive earnings per diluted common shares (EPS) impact of approximately $0.23 per share (after-tax) during the fourth quarter of 2021.
In the litigation, WSFS sought to enforce an indemnity arising from the stock purchase agreement and recover all remaining amounts owed to WSFS relating to the previously disclosed Universitas Education, LLC (Universitas) arbitration proceeding. WSFS had entered into a settlement agreement on February 27, 2018, with Universitas to resolve arbitration claims related to services provided by Christiana Trust prior to its acquisition by WSFS in December 2010 by agreeing to pay Universitas $12 million to avoid the uncertainties of arbitration and to end the expense of ongoing litigation. Thereafter, WSFS sued the insurance carriers that provided coverage relating to the Universitas matter and reached a settlement to recover approximately $8 million during the third quarter of 2018.
This $15 million settlement payment to resolve the indemnity litigation plus the approximate $8 million in recoveries from prior litigated matters (including the insurance carrier lawsuit) have resulted in a complete recovery of the $12 million paid to Universitas and all litigation costs incurred by WSFS in the Universitas arbitration and all related lawsuits, including the current litigation, plus an amount allocable to prejudgment interest.
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