Royal & Sun Alliance has reached a settlement with Wilmington Trust in the ongoing Student Finance Corporation litigation.
R&SA’s US subsidiary involved in the case, Royal Indemnity Company (RIC), has agreed to pay $11 million to Wilmington Trust one of the three remaining plaintiffs in the case.
Wilmington Trust has agreed to assign to RIC all of its SFC related student loans for collection together with certain other rights.
The Student Finance Corporation filed for bankruptcy in the US amid allegations of fraud, owing several financial institutions money. RIC claimed that misrepresentations made to the company about the student loans wiped out its obligations to cover the losses incurred.