The Royal Bank of Canada has agreed to pay West Virginia $175,000 to remove itself from a massive lawsuit involving allegations of collusion and bid riggings.
About a third of that money will go to the private attorneys hired by the state in the case.
The bank and the state Attorney General's Office agreed in April to the details of the settlement.
A judge approved the settlement in May, according to legal website Law360.
It's considerably less than the "millions and millions" of dollars promised from the Attorney General's Office when the lawsuit was filed in 2010.
The lawsuit isn't over yet, said attorney general spokeswoman Beth Ryan.
"RBC was one of 22 banks/financial institutions involved in the lawsuit at the time of the settlement. The case against 21 other companies is still ongoing," Ryan said Friday in an emailed statement.
"RBC was a very small player in the case and involved in an extremely small number of transactions that were at the heart of the lawsuit."
The lawsuit is "multidistrict litigation," which means West Virginia is one of many other states involved. Ryan said West Virginia was the only state with claims against RBC.
West Virginia and the others involved in the larger lawsuit allege the bank and other big companies - Bank of America, JP Morgan Chase, Merrill Lynch, Morgan Stanley, Wells Fargo -worked to earn money from sales involving something called municipal derivatives.
Municipalities frequently issue bonds when they want to fund capital projects. Financial institutions can use the money municipalities take in from issuing those bonds and invest them in the form of municipal derivatives.
It's a very large economic market and became an increasingly common way to invest in the last 20 years. However, West Virginia and many other states allege the companies worked together to create a system that earned them money that could have gone back to the public.
"Municipal derivative providers and brokers worked together to allocate municipal derivative transactions among themselves," West Virginia stated in a revised legal complaint, according to Law360.