Northern Trust Announces Proposed Litigation Settlement

Aug 10, 2004, 01:00 ET from Northern Trust Corporation

    CHICAGO, Aug. 10 /PRNewswire-FirstCall/ -- Northern Trust Bank of
 California N.A., a subsidiary of Northern Trust Corporation, has entered into
 a settlement in principle to resolve a putative class action presently pending
 in state court in Los Angeles, California.  The settlement remains subject to
 negotiation of a final written agreement and court approval.  Upon final
 approval of the settlement, the California bank will pay approximately
 $21 million.  The settlement, including estimated associated costs, is
 expected to result in a third quarter 2004 after-tax charge of approximately
 $10.4 million, or $.05 earnings per share.
     This putative class action, captioned Banks v. Northern Trust Bank of
 California, N.A., was filed in 2003 against the California bank, seeking
 class-wide reimbursement, with interest and punitive damages, for
 approximately 300 open and closed trust accounts that were allegedly charged
 fees in excess of fee provisions in the underlying trust documents. Virtually
 all of the trust accounts in the putative class were purchased by the
 California bank from Trust Services of America, Inc., which was then a
 subsidiary of California Federal Bank.  Prior to the filing of this lawsuit,
 Northern Trust had begun to file petitions seeking review and approval from
 the California probate court of reimbursements to these accounts, and 79 such
 petitions had already been approved by the court when the settlement in
 principle was reached.  Northern Trust does not acknowledge any liability and
 maintains that it acted at all times in good faith and in the best interest of
 the trusts and their beneficiaries.  Northern Trust agreed to the settlement
 in order to avoid further protracted and expensive litigation.  Northern Trust
 expects that it will take some months for the settlement agreement to be
 negotiated and finally approved by the court.  Upon final approval of the
 settlement, the trust beneficiaries will be sent further information about
 their participation in the settlement.
     Northern Trust Corporation (Nasdaq:   NTRS) is a leading provider of
 investment management, asset and fund administration, fiduciary and banking
 solutions for corporations, institutions and affluent individuals worldwide.
 Northern Trust, a multibank holding company based in Chicago, has a growing
 network of offices in 15 U.S. states and has international offices in six
 countries. As of June 30, 2004, Northern Trust had assets under administration
 of $2.3 trillion, assets under investment management of $527 billion and
 banking assets of $41 billion. Northern Trust, founded in 1889, has earned
 distinction as an industry leader in combining high-touch service and
 expertise with innovative products and technology. For more information, visit .

SOURCE Northern Trust Corporation