By Ben Glickman
Community Bank System revised down its earnings results for the fourth quarter due to a $5.8 million wage settlement.
The Syracuse, N.Y.-based bank said in a regulatory filing Friday that certain branch employees had threatened collective and class action regarding unpaid wages.
The settlement action to resolve the issue meant that the company recorded the $5.8 million loss contingency after it had announced its earnings on Jan. 23.
Its profit was reduced by $4.6 million to $33.7 million in the quarter ended Dec. 31. Its per-share profit was revised to 63 cents, compared with the originally reported 71 cents a share.
The company expects to execute a settlement agreement connected to the issue in the first quarter.
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