Southland Holdings (SLND) settles Washington project litigation and delays repayment
Rhea-AI Filing Summary
Southland Holdings, Inc., through its subsidiary American Bridge Company, entered into a Settlement Agreement resolving litigation tied to the Washington State Convention Center expansion project in Seattle.
The case had produced a Merits Judgment of about $57.1 million, which American Bridge’s sureties already paid with interest totaling $57.8 million. Under the new agreement, the Sureties will pay an additional approximately $26.5 million to Clark/Lewis to settle remaining cost, fee, interest, and sanction-related amounts. In exchange, the parties will dismiss all project-related claims with prejudice, subject to limited exceptions, and provide broad mutual releases.
The company states that American Bridge’s financial obligations from this settlement are consistent with prior estimates in its recent annual report. Southland and the Sureties are negotiating a long-term financing agreement for amounts the Sureties paid, and the Sureties have agreed to forbear from seeking repayment until at least March 27, 2027.
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Insights
Southland crystallizes large project dispute costs while securing near-term repayment relief.
Southland Holdings has now contractually resolved a major dispute from the Washington State Convention Center project. The judgment of about $57.1 million, plus interest of $57.8 million already paid by Sureties and an additional approximately $26.5 million settlement payment, defines the total exposure tied to this litigation.
The company notes these obligations align with estimates already reflected in its latest annual financial statements, suggesting limited incremental surprise versus previously disclosed expectations. Broad mutual releases and dismissal of claims reduce legal uncertainty, although American Bridge is preserving rights regarding an appeal of the sanctions order.
Southland and the Sureties are negotiating a long-term financing arrangement for the amounts paid on American Bridge’s behalf. The Sureties’ agreement to forbear from seeking repayment until at least March 27, 2027 eases short-term liquidity pressure, though the final terms and ongoing repayment burden will depend on the outcome of those negotiations.
8-K Event Classification
Key Figures
Key Terms
Settlement Agreement and Release of Claims legal
Merits Judgment legal
Dismissals With Prejudice legal
Satisfaction of the Merits Judgment legal
forbear financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Item 1.01 Entry into a Material Definitive Agreement.
On March 27, 2026, American Bridge Company (“American Bridge”), a wholly owned subsidiary of Southland Holdings, Inc. (the “Company”), entered into a Settlement Agreement and Release of Claims (the “Settlement Agreement”) with Clark/Lewis, a Joint Venture (“Clark/Lewis”), certain sureties of American Bridge (the “Sureties”), the Washington State Convention Center (“WSCC”), and American Bridge’s litigation counsel.
The Settlement Agreement resolves disputes among the parties arising out of the Washington State Convention Center expansion project in Seattle, Washington (the “Project”), including litigation in King County Superior Court Cause No. 22-2-19603-3 SEA (the “Litigation”). As previously disclosed, the Litigation resulted in, among other things, a judgment against American Bridge and the Sureties, jointly and severally in the principal amount of approximately $57.1 million (the “Merits Judgment”). The Sureties previously paid the Merits Judgment and post-judgment interest outstanding as of the date of payment which totaled $57.8 million.
Under the Settlement Agreement, the parties agreed to resolve the Litigation and settle and compromise all unresolved claims, issues, disputes, and controversies related to the Project and the Litigation, subject to certain limited exceptions. Pursuant to the Settlement Agreement, the Sureties are required to pay an additional approximately $26.5 million to Clark/Lewis, representing approximately $25.5 million for a negotiated settlement amount of Clark/Lewis’s costs, fees and prejudgment interest and approximately $1.0 million for a negotiated settlement amount of American Bridge’s allocated portion of court-ordered sanction amounts. American Bridge is appealing the court’s sanctions order, and the Settlement Agreement reserves rights relating to such appeal.
Under the Settlement Agreement, Clark/Lewis agreed to file a Satisfaction of the Merits Judgment as to the Sureties and execute an assignment of the Merits Judgment to the Sureties. Within three days of the filing of the Satisfaction of Judgment, (i) American Bridge and the Sureties are required to file Dismissals With Prejudice of appeals to the Merit Judgment, and (ii) Clark/Lewis is required to file a Stipulation and Order to Dismiss all claims, issues, disputes, and controversies related to the Project and the Litigation with prejudice as to the Sureties, except for the reservation of certain rights related to American Bridge’s appeal of the sanctions order and for certain ongoing obligations of the parties.
The Settlement Agreement provides for broad mutual general releases among the parties and their related persons and entities for claims arising out of or related to the Litigation, related bonds and actions and circumstances giving rise to the underlying dispute, except related to the appeal of the sanctions order and to the parties’ ongoing obligations.
The foregoing description of the Settlement Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such agreement, a copy of which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarterly period ending on March 31, 2026.
The Company believes that the financial obligations of American Bridge arising under the Settlement Agreement are consistent with the Company’s prior estimates reflected in the financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 26, 2026. The Company and the Sureties are negotiating repayment terms for amounts paid by the Sureties on behalf of American Bridge under a long-term financing agreement. The Sureties have agreed to forbear on seeking repayment for these amounts until at least March 27, 2027. There can be no assurances that a resolution for a long-term financing agreement will be reached.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: April 2, 2026 | SOUTHLAND HOLDINGS, INC. | ||
| By: | /s/ Frank S. Renda | ||
| Name: | Frank S. Renda | ||
| Title: | President and Chief Executive Officer | ||
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