First California Bank agreed to pay the politicians who said the bank abetted Durkee's fraud, said Wylie Aitken, the attorney representing Reps. Loretta Sanchez (D-Garden Grove), Linda T. Sanchez (D-Lakewood) and Susan A. Davis (D-San Diego), as well as state Sen. Lou Correa (D-Santa Ana).
Durkee pleaded guilty to fraud in March 2012; she is currently serving an eight-year prison sentence.
The settlement, which was reached Tuesday, covers the suit brought by Aitken's clients as well as previous complaints by Sen. Dianne Feinstein and others. In all, plaintiffs said they lost about $8 million in campaign funds. Funds from the $4-million settlement will be returned to the politicians' campaign committees.
Thomas Nolan, an attorney for the bank, rejected the claim that the bank aided Durkee's theft.
Nolan said the bank is not accepting responsibility for the lost money, but decided to settle to avoid a costly court battle.