Two former leaders with North Fork Bancorp reached a settlement with Capital One Bank on Tuesday, agreeing to pay $20 million after Capital One filed suit against the two and their new employer, BankUnited Inc., last summer.
North Fork Bankcorp's former CEO, John Kanas, and Vice Chairman, John Bohlsen, made no admission of wrongdoing under the terms of the settlement, according to a joint statement released on Tuesday.
The suit was brought forth by Capital One after the Virginia-based bank - which bought out North Fork Bancorp in 2006 - said the two violated the terms of a non-compete agreement, entering the New York market earlier than the terms dictated when BankUnited Inc. announced its intent to purchase New York City-based Herald National Bank last summer. The transaction was approved in February of 2012.
The settlement states that BankUnited Inc. must operate Herald National Bank separately until January of 2013.
According to the statement, "the provisions in the settlement agreement will not have any material financial impact on the company or any material effect on [BankUnited's] 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."