ViacomCBS Inc. investors seek final approval of a $120 million settlement with Morgan Stanley, Goldman Sachs, and Wells Fargo over dumping shares during Archegos Capital Management’s collapse. The banks acted as underwriters for Viacom, a major position in Archegos’ portfolio. The settlement aims to avoid further litigation expenses.

The trio of banks continue to deny wrongdoing but agreed to the settlement to prevent prolonged distraction. Morgan Stanley led the underwriting of almost 45% of Viacom’s offering, with Goldman at 3.2% and Wells Fargo less than 2%. The lawsuit initially targeted multiple defendants but focused on these three banks.

Archegos’ founder, Bill Hwang, and ex-CFO were convicted of defrauding bank counterparties, leading to nearly $10 billion in losses for trading partners. The collapse impacted Credit Suisse, Morgan Stanley, UBS, Nomura, and others. Hwang received an 18-year sentence, while his former CFO was sentenced to eight years.

Viacom investors in the lawsuit received over 1.5 million documents and testimony from 37 witnesses. A former federal judge mediated the case, recommending the $120 million settlement, which both sides accepted. The case is titled Camelot Event Driven Fund v. Morgan Stanley & Co. in the New York State Supreme Court.

The settlement comes after months of litigation following Archegos’ collapse, with investors claiming the banks failed to disclose conflicts of interest. The settlement amount for each bank remains undisclosed. A New York state judge is set to review and approve the deal on August 5.

Read more at Yahoo Finance: Morgan Stanley, Goldman to Settle Lawsuit Over Archegos Trades