WSFS Financial Corporation announced it agreed to resolve litigation related to a predecessor, Christiana Bank & Trust Company. WSFS will receive $15 million under the terms of the settlement.
The case was related to a Universitas Education, LLC arbitration proceeding.
Christiana Bank & Trust, founded in Wilmington, provided trustee services to an insurance company where a misappropriation of Universitas funds allegedly took place. Christiana Trust was not tied to that action.
WSFS had entered into a settlement agreement in 2018 with Universitas to resolve arbitration claims related to services provided by Christiana Trust before its acquisition by WSFS in December 2010. WSFS agreed to pay Universitas $12 million to avoid the uncertainties of arbitration and to end the expense of ongoing litigation.
WSFS then sued the insurance carriers that provided coverage relating to the Universitas case and reached a settlement to recover approximately $8 million during the third quarter of 2018.
This $15 million settlement payment to resolve the insurance litigation plus the nearly $8 million in recoveries from prior litigated matters (including the insurance carrier lawsuit) 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.
In 2017, WSFS used the Christiana Trust name in forming an entity that combined wealth management companies acquired by company.
WSFS Financial Corporation is a multi-billion-dollar financial services company based in Wilmington. Its primary subsidiary, WSFS Bank, is the oldest and largest locally managed bank and trust company in the Delaware Valley.