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POUGHKEEPSIE SAVINGS BANK SETTLES CLASS ACTION LAWSUIT NO ADDITIONAL COST TO THE BANK

 POUGHKEEPSIE SAVINGS BANK SETTLES CLASS ACTION LAWSUIT
 NO ADDITIONAL COST TO THE BANK
 POUGHKEEPSIE, N.Y., June 9 /PRNewswire/ -- Poughkeepsie Savings Bank, FSB (NASDAQ: PKPS) today announced that it has reached a settlement of the class action lawsuit filed against the bank and three former officers of the bank in March 1990. The settlement provides for dismissal with prejudice of all claims against the bank and each of the former officers. The bank's insurance carrier is a party to the settlement agreement which calls for the payment of $1,500,000, a portion of which will be used to pay legal fees to counsel for the class. The bank stated that the settlement amount is covered by its directors' and officers' liability insurance and will not require further disbursements by Poughkeepsie Savings Bank.
 Christoph H. Schmidt, chairman and chief executive officer, said that while the bank and the individual defendants continue to deny all allegations of wrongdoing or liability whatsoever relating to this matter, the settlement is in the best interests of the bank because it will eliminate the burden, inconvenience, uncertainty and expense connected with the time-consuming litigation. He also believes that the settlement of this matter removes an impediment to the bank's capital restoration plan.
 Settlement of the lawsuit, which was brought by the plaintiff as a representative of a class comprising purchasers of bank stock in the period between Jan. 28, 1988 and Feb. 2, 1989, is subject to certain conditions, including acceptance by substantially all of the members of the class and both preliminary and final approval by the United States District Court for the Southern District of New York, where the lawsuit is pending. Documents seeking the court's preliminary approval of the settlement will be filed shortly with the court.
 Poughkeepsie Savings Bank is a community banking institution whose principal market is the Mid-Hudson Valley region of New York, where it operates eight branches. Market Street Mortgage Corporation, its Tampa- based mortgage banking subsidiary, has loan production offices in Florida, North Carolina, Georgia, Virginia and Maryland. The bank's deposits are insured by the Federal Deposit Insurance Corporation.
 -0- 6/9/92
 /CONTACT: Robert J. Hughes, executive vice president and chief financial officer of Poughkeepsie Savings Bank, 914-431-6386/
 (PKPS) CO: Poughkeepsie Savings Bank, FSB ST: New York IN: FIN SU:


SM-OS -- NY058 -- 8502 06/09/92 16:24 EDT
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Publication:PR Newswire
Date:Jun 9, 1992
Words:393
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