Wilmington Trust Shareholders Clear Roadblock in Lawsuit

Judge lifts stay in Wilmington Trust shareholder lawsuit

A federal judge has lifted a roadblock in a shareholder lawsuit over the collapse of Wilmington Trust.

The judge on Monday granted a plaintiffs' request to lift a stay of discovery in the lawsuit pending resolution of criminal charges against four former bank executives.

In her order, the judge noted the age of the civil case, which was filed in 2010, the pace at which the criminal proceeding is progressing, and the interests of justice.

Attorneys for the shareholders have previously pressed for internal bank documents, noting that an indictment against the former bank executives relies on documents that defendants in the lawsuit have refused to provide.

Prosecutors allege that Wilmington Trust concealed the truth about its deteriorating commercial real estate loan portfolio before the bank's collapse in 2011.

Copyright AP - Associated Press
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