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Gold Banc says qui tam suit affects proposed merger

Gold Banc announced that Silver Acquisition Corp., with whom it has a merger agreement, has cut its offering price, asserting that a proposed settlement in a False Claims Act suit against Gold may adversely impact Gold’s financial condition.

In June, Gold Banc was sued for allegedly charging excessive interest rates and fees on agricultural loans. The bank has proposed to settle the whistleblower lawsuit for $16 million. Federal prosecutors have accepted the deal in principle, the bank said.

Business Wire posted a news report on September 21, 2004.

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