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Get filing alertsSouthland settles $36.4M surety liability for $5M, expects ~$29M Q3 gain
Filed August 27, 2026 · Period ending August 26, 2026 · ~1 min read
Key Changes
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Southland will pay $5M to Liberty Mutual to settle ~$36.4M in surety losses from the Washington State Convention Center project, ~$34M of which relates to the adverse WSCC Judgement against American Bridge Company.
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The settlement is expected to generate a favorable pre-tax income impact of ~$29M in Q3 2026, reflecting the discount to the previously recorded surety payable. The company notes this is a preliminary estimate.
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Southland is continuing negotiations with Zurich American Insurance Company and Fidelity and Deposit Company of Maryland to resolve the remaining surety payable related to the WSCC Judgement.
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Summary
Southland Holdings resolved a major legacy liability on August 26, 2026, settling approximately $36.4 million in surety losses with Liberty Mutual Insurance Company for $5 million. The settlement relates to the Washington State Convention Center project litigation, where an adverse judgment of approximately $34 million had been entered against the company's American Bridge subsidiary. The $5 million payment, due by September 30, 2026, represents an 86% discount to the recorded liability.
The settlement is expected to generate a favorable pre-tax income impact of approximately $29 million in Q3 2026, though the company cautions this is a preliminary estimate subject to change as it completes its accounting evaluation. This one-time gain will significantly improve Southland's Q3 results and removes a substantial contingent liability from the balance sheet. The company is continuing negotiations with Zurich American Insurance Company and Fidelity and Deposit Company of Maryland to resolve the remaining portion of the WSCC surety payable, which could result in additional favorable impacts if settled on similar terms.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 28, 2026 · How we verify