Opus Bank (Nasdaq: OPB) settled its complaint about alleged theft of its employees by rival First Foundation Inc. (Nasdaq: FFWM).
The case was settled around March 12, according to a filing last week with the Superior Court of Orange County. Terms were undisclosed.
“The Opus matter has been resolved,” First Foundation Chief Executive Scott F. Kavanaugh said in an emailed comment without elaborating.
An Opus spokesperson also confirmed the case was settled; he also declined to elaborate.
The settlement occurred after a March 8 First Foundation filing that accused Opus of “underhanded tactics” to steal First Foundation employees in 2010. First Foundation said it was unaware of Opus “pursuing a strategic lift out of its employees and documents” until the discovery in the now-settled case began.
Neither bank listed the case as having potentially material effects on its earnings, according to the legal proceedings section of their annual reports.
Opus, the third-largest bank based in OC with $7.5 billion in assets, filed a lawsuit in 2016 accusing First Foundation of unlawfully hiring nine executives from it, including Opus director of income property banking. Opus said another dozen of its employees also went to work at First Foundation.
“Opus alleges that First Foundation has engaged in an aggressive and illegal campaign to target, solicit and hire away key Opus employees,” said a 2016 Opus court filing.
First Foundation, which has about $4.5 billion in assets, responded by saying that Opus employees left because of a hostile work environment and that Opus’ lawsuit amounted to harassment.
Both Opus Chief Executive Stephen Gordon and First Foundation Chief Executive Kavanaugh worked together when they founded Commercial Capital Bancorp, which was sold in 2006 to Washington Mutual, which collapsed during the financial downturn in 2008.
