DOJ Says Truist Bank Will Pay $9.1 Million to Resolve SunTrust Claims
TFC
By Stephen Nakrosis
Truist Bank will pay about $9.1 million to resolve claims that allegedly took place prior to company's formation regarding the administration of trust fund accounts by SunTrust Bank, the Justice Department said.
SunTrust administered a group of trust accounts from December 2011 through December 2015 that resulted from the settlement of lead poisoning cases in Missouri, the DOJ said. The Halpern Group served as a structured settlement facilitator for those who received awards, and referred those individuals to SunTrust.
The DOJ contended that Halpern requested, and SunTrust frequently approved, disbursements that weren't in the best interests of trust account beneficiaries.
A Truist spokesperson said the matter relates to authorized distributions for a small number of accounts that took place a decade ago.
"We deny these allegations but are pleased to have put the matter behind us," the spokesperson said.
Halpern Group didn't immediately respond to a request for comment.
SunTrust was acquired by Branch Banking and Trust Company in December 2019, and the combined company was renamed Truist.
Write to Stephen Nakrosis at [email protected]
(END) Dow Jones Newswires
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