MCLEAN, Va., June 19, 2012 /PRNewswire/ -- Capital One
Financial Corporation (NYSE: COF), John A.
Kanas, John Bohlsen and
BankUnited, Inc. (NYSE: BKU) jointly announced today that they have
reached an agreement to settle the lawsuit commenced by Capital One
against Kanas and Bohlsen in July
2011 in the United States District Court in the Eastern
District of Virginia. Capital One alleged that Kanas and
Bohlsen breached the terms of certain non-compete arrangements that
they had entered into with Capital One in 2007. Under the
settlement, Capital One will receive $20
million, which amount Kanas and Bohlsen have agreed to
pay. Other agreed upon restrictions are detailed below.
Although not a party to the lawsuit, BankUnited, Inc., for which
Kanas serves as Chairman and Chief Executive Officer and Bohlsen
serves as Vice Chairman and Chief Lending Officer, joined the
settlement solely with respect to the specific obligations that
apply to it. In agreeing to settle the lawsuit, Kanas and
Bohlsen denied any liability and made no admission of
wrongdoing.
Pursuant to the terms of the settlement agreement the parties
have agreed that until January 31,
2013 (i) neither BankUnited nor any other bank for which Kanas
and Bohlsen are employed will open a bank branch in New York, New
Jersey or Connecticut, and
(ii) Herald National Bank, a wholly-owned national banking
subsidiary of BankUnited based in New
York, will continue to operate separately from BankUnited's
primary banking subsidiary, BankUnited, N.A., as a distinct legal
entity, and Kanas and Bohlsen will continue not to play a
management role or serve on the Board of Directors at Herald until
after that time. In addition to the foregoing, the settlement
agreement contains certain non-solicit arrangements with respect to
Capital One customers, as well as certain non-hire arrangements
with respect to Capital One employees, which arrangements will also
expire on January 31, 2013.
BankUnited said that the provisions in the settlement agreement
will not have any material financial impact on the company or any
material effect on its strategic plans in the Tri-State area.
Capital One, Kanas and Bohlsen stated that they are pleased that
they have been able to reach an amicable resolution of the lawsuit
that they believe is in all parties' best interests.
Capital One was represented by Gibson, Dunn & Crutcher LLP
and Murphy & McGonigle.
John Kanas and John Bohlsen were represented by Boies Schiller & Flexner LLP and
James H. Rodio, PLC.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a
financial holding company whose subsidiaries, which include Capital
One, N.A., Capital One Bank (USA),
N. A., and ING Bank, fsb, had $216.5
billion in deposits and $294.5
billion in total assets outstanding as of March 31, 2012. Headquartered in McLean, Virginia, Capital One and ING Direct
offer a broad spectrum of financial products and services to
consumers, small businesses and commercial clients through a
variety of channels. Capital One, N.A. has approximately 1,000
branch locations primarily in New
York, New Jersey,
Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company,
Capital One trades on the New York Stock Exchange under the symbol
"COF" and is included in the S&P 100 index.
About BankUnited
BankUnited, Inc. is a bank holding company with three
wholly-owned subsidiaries: BankUnited, N.A., which is one of
the largest independent depository institutions headquartered in
Florida by assets, BankUnited
Investment Services, Inc., a Florida insurance agency which provides
comprehensive wealth management products and financial planning
services, and Herald National Bank, a commercial bank servicing the
New York City market.
BankUnited, N.A., is a national bank headquartered in Miami Lakes, Florida, with $11.6 billion of assets, more than 1,404
professionals and 94 branches in 15 counties at March 31, 2012.
SOURCE Capital One Financial Corporation