BANCO POPULAR SUED.(Stoneridge Investments Partners sues board of directors of Popular Inc. )(Brief Article)

0 Comments | Caribbean Update, April, 2003

Stoneridge Investments Partners, owner of shares in Banco Popular de Puerto Rico (BPPR), filed a lawsuit in the U.S. District Court against the board of directors of Popular Inc. for failing to comply with its duties of protecting the institution, reports AP (Feb. 21, 2003). The legal action comes after the negotiation made by BPPR with the Federal Government to pay US$21.6 million in exchange for not having to face criminal charges for admitting to laundering millions of dollars from drug money without reporting the suspicious activity to the Federal Government, according to published reports. Stoneridge objects that they had to pay the fine and alleged the institution's image has been affected. The plaintiff requests that the bank's executives should pay for the...