PNC reaches $168M million settlement in National City lawsuit
PNC Financial Services Group Inc. said it reached an agreement to pay $168 million to settle a securities fraud lawsuit brought by investors of National City Corp., which the company acquired in 2008.
Investors, led by the New York State Common Retirement Fund, sued National City in 2008, claiming the bank misrepresented the extent of losses from mortgages and home equity loans, artificially inflating share value.
The lawsuit claimed that National City shares dropped from $37 in April 2007 to less than $10 a year later.
Pittsburgh-based PNC, the sixth largest U.S. bank, said in a securities filing that the effect of the settlement on PNC's future results was expected to be immaterial.
A PNC spokesman couldn't be reached for comment. Separately, PNC said it was subpoenaed by federal prosecutors investigating lending practices at National City.
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