TD Bank settles Stanford Financial litigation for $1.2B

TD Bank Group announced earlier today that it has agreed to a settlement in principle relating to litigation involving the Stanford Financial Group. Upon final approval of the settlement by the Court, TD will pay $1.205B to the court-appointed receiver for the Stanford Receivership Estate. Under the terms of the agreement, TD has settled with the receiver, the Official Stanford Investors Committee, and other plaintiffs in the litigation and these parties have agreed to a bar order dismissing and releasing all current or future claims arising from or related to the Stanford matter. TD "expressly denies any liability or wrongdoing with respect to the multi-year Ponzi scheme operated by Stanford and makes no admission in connection to any Stanford matter as part of the settlement. TD provided primarily correspondent banking services to Stanford International Bank Limited and maintains that it acted properly at all times. TD elected to settle the matter to avoid the distraction and uncertainty of continuing a long legal proceeding," the bank said in a statement. As a result of this settlement, TD will record a provision of approximately C$1.2B after tax in Q1.