A proposed $22.5 million dollar settlement with Fidelity Bank has been approved.

As part of a class-action against multiple defendants, plaintiffs
reached a settlement agreement with Fidelity
in July 2020.

The settlement was given final approval on February 26th. Later that same day Fidelity Bank and John Merril were dismissed as defendants.

An article published by the WBJ
reveals
that
‘a significant portion of those costs will be covered by the bank’s insurance.’

Derek Beahn, Fidelity’s senior vice president and director of marketing, said a significant portion of the settlement was covered by the bank’s insurance, but declined to clarify how much, noting that Fidelity ”still finished 2020 profitable and well-capitalized.”

The Fidelity is the fourth settlement reached in the TelexFree class-action. It follows settlements of

$1.75 million with Base Commerce (then known as Phoenix Payments), John Hughes, Brian Bonfiglio, John Kirchhefer and Alex Sidel (processor used to launder TelexFree funds);

$425,000 with Synovus Bank (bank used to launder TelexFree funds); and

$100,000 with Joseph Craft and Craft Financial Solutions (TelexFree’s accountant)

Looking forward, on February 19th class-action plaintiffs filed a motion
seeking a preliminary injunction against Dustin Sparman and Vantage Payments
.

As I understand it participation in the TelexFree class-action 
does not
 interfere with the TelexFree Trustee claims process.

I am not a lawyer though and 
you should absolutely seek legal advice if you have any legal questions pertaining to the class-action.

🤖 Quick Answer

What was the settlement amount approved for Fidelity Bank in the TelexFree class-action lawsuit?
Fidelity Bank received final approval for a proposed $22.5 million dollar settlement as part of a class-action lawsuit on February 26th. A significant portion of the settlement costs was covered by the bank's insurance, according to statements from Fidelity's senior leadership.

When was the TelexFree class-action settlement with Fidelity Bank finalized?
The settlement agreement with Fidelity Bank was reached in July 2020 and received final court approval on February 26th of the following year. On the same day of approval, both Fidelity Bank and defendant John Merril were dismissed from the case.

How did Fidelity Bank manage the financial impact of the settlement?
According to Derek Beahn, Fidelity's

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