Southland Holdings' subsidiary American Bridge previously lost a lawsuit tied to the Washington State Convention Center project, leaving its surety companies on the hook for damages. On August 26, 2026, Southland reached a settlement with two of those sureties — Liberty Mutual and Zurich — agreeing to pay Liberty $5 million by September 30 to resolve roughly $36.4 million in losses Liberty had absorbed on the project, about $34 million of which related to the court judgment. The company preliminarily expects this to boost pre-tax income by about $29 million in Q3 2026, though it cautions the estimate could change as accounting treatment is finalized.
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