Akerman Senterfitt settles FDIC suit in bank failure
Akerman Senterfitt has agreed to pay $250,000 to settle a suit by the Federal Deposit Insurance Corp. claiming negligence in the law firm’s representation of a failed Florida bank.
The FDIC had claimed the law firm and two of its lawyers failed to secure the Peninsula Bank of Englewood’s interest in a $7 million loan to a condo developer, the Herald-Tribune reports. The law firm denied liability but settled to avoid the time and expense of litigation, according to the settlement agreement (PDF).
The FDIC had originally sought $4.6 million in damages, the estimated value of the developer’s property. The bank was unable to foreclose on the parcel after the developer stopped paying on the loan. The bank failed in June 2010.
A law firm spokesperson did not immediately respond to a request for comment.
