The recent BancorpSouth Inc. $13 million settlement of a shareholder class action is the latest in a series of cases filed since January 2017 that demonstrate a possible "growing convergence of both securities fraud issues and Bank Secrecy Act (BSA)/anti-money laundering (AML) issues," said Ballard Spahr Partner Peter D. Hardy.

While it is not clear why these lawsuits appear to be increasing in frequency, financial institutions are advised to invest in effective BSA/AML programs to mitigate the risk of potential government enforcement actions, costly fines, and potential shareholder class actions.

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