Financial services company Advanta Corp., Spring House, PA, said yesterday that it would “vigorously” fight a lawsuit filed against it by Fleet Financial Group Inc., Boston.
In the suit, filed Friday in the Delaware Chancery Court, Fleet has accused Advanta of breaching its fiduciary duty, as well as other charges, in connection with Fleet’s $1.3 billion acquisition of Advanta’s credit card business last year. Advanta sold the business to focus on mortgage, home equity and small business lending.
In addition to breach of fiduciary duty, Fleet says Advanta sought an “accounting for conversion of funds,” or the unauthorized taking of property.
Advanta said in a statement that the complaint “misconstrues the settlement process and contains groundless and duplicative allegations.” It added that Fleet “controlled the necessary information and failed to make it readily available to Advanta and its independent auditors to permit the timely completion of the settlement process.”
Advanta said it doesn’t expect the suit to have any impact on its business.
A Fleet spokeswoman could not be reached by deadline.
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