A philanthropist couple has reached an agreement to resolve their $7 million breach of fiduciary duty allegations against the now-failed First Republic Bank. George Miller and Janet McKinley informed a California federal judge that they reached a deal during a private mediation session.
Settlement Agreement and Court Proceedings
Miller and McKinley, along with the Federal Deposit Insurance Corp. (FDIC), acting as receiver for First Republic Bank, filed a proposed order on Wednesday. The order states that they have agreed to vacate the upcoming scheduled hearings and stay the action for 30 days while the $7 million settlement agreement is finalized.
First Republic $7M Settlement : Background of the Case
The retired couple initiated their action last year, alleging that one of First Republic’s investment managers, Samuel Carl Schoner, invested the entirety of their funds into the failed bank’s stock. They claimed Schoner ignored repeated instructions to sell the stock when the bank was on the verge of collapse, causing losses of more than $7 million.
