According to a federal document filing released this week, a superior court judge has granted preliminary approval of a settlement in a case involving the owner of Santa Barbara Bank & Trust that calls for paying $3.4 million to stockholders’ attorneys who sued over the company’s stock maneuvers last year.
Santa Barbara County Superior Court Judge Denise de Bellefeuille is scheduled to make a final ruling on the case at a January 19 hearing on the Pacific Capital Bancorp shareholders’ derivative suit, which is a type of litigation brought by one or more shareholders to correct or prevent what they see as something wrong with the corporation.
The proposed settlement also calls for Pacific Capital to replace its chief appraisal officer and undertake a three-year “corporate governance reform” program. While the plaintiffs’ attorneys could get $3.4 million in fees and expenses, the settlement does not call for the plaintiffs to get any cash.