Southland Holdings, Inc. Enters Settlement Over WSCC Litigation

What Happened
Southland Holdings, Inc. reported that on March 27, 2026 its wholly owned subsidiary American Bridge Company entered a Settlement Agreement resolving litigation tied to the Washington State Convention Center (WSCC) expansion project in Seattle. The underlying King County Superior Court matter produced a merits judgment of about $57.1 million; the project sureties previously paid roughly $57.8 million (including interest). Under the new settlement, the sureties will pay an additional approximately $26.5 million to Clark/Lewis to resolve remaining claims and the parties will exchange releases and dismissals with certain limited reservations (notably an American Bridge appeal of a sanctions order).

Key Details

• Merits Judgment: ~ $57.1 million; sureties previously paid ~$57.8M (includes post-judgment interest as of payment).
• Additional settlement payment: ~ $26.5 million total (≈ $25.5M to settle Clark/Lewis costs/fees/prejudgment interest; ≈ $1.0M for American Bridge’s allocated portion of court-ordered sanctions).
• Timing and filings: Clark/Lewis will file a Satisfaction of the Merits Judgment as to the sureties and assign the judgment to the sureties; within three days of that filing, American Bridge and the sureties must dismiss appeals of the merits judgment and Clark/Lewis must dismiss related claims with prejudice as to the sureties (with limited reservations).
• Financing/repayment: The Company and the sureties are negotiating long-term repayment for amounts the sureties paid on American Bridge’s behalf; the sureties will forbear seeking repayment until at least March 27, 2027. The settlement agreement will be filed as an exhibit to Southland’s Form 10-Q for the quarter ending March 31, 2026.

Why It Matters
This settlement resolves the major litigation tied to the WSCC expansion project and confirms the near-term cash obligations and litigation posture for American Bridge and Southland. The Company says the financial impact is consistent with prior estimates in its March 26, 2026 Form 10-K, and the sureties’ forbearance on repayment eases immediate cash pressure—though there is no guarantee a long-term financing arrangement will be reached. Investors should note the remaining reserved appeal of the sanctions order and that the formal settlement agreement will be included in the upcoming 10-Q.