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. Last Updated: 07/27/2016

Bank Fined $350M




PHILADELPHIA -- A jury in the United States has returned a $350 million judgment against First Union Corp., agreeing that a bank now owned by First Union misappropriated $1.7 million from a customer's account, but the bank maintains it acted lawfully and plans to appeal.


The customer, Pioneer Commercial Funding Corp. of New York City, was forced to shut down because of the mistake, but will now reopen, its lawyer said.


Wednesday's award includes $1.7 million in direct damages, $13.4 million in compensatory damages, and $337.5 million in punitive damages. Large punitive awards from U.S. juries are often reduced by judges.


"They got caught in a major cover-up, and they got caught lying on the stand," said Maurice Mitts of the Philadelphia law firm Frey, Petrakis, Deeb and Blum, which represented Pioneer.


First Union plans to appeal.