http://www.capecoralnow.net/
Court OKs $624M payout to Countrywide investors
LOS ANGELES – Feb. 28, 2011 – A federal judge on Friday approved a $624 million settlement in a lawsuit brought by several New York public pension funds against fallen mortgage giant Countrywide Financial Corp.
The settlement, a version of which was had been originally hammered out last year, also calls for KPMG, Countrywide’s accounting firm, to pay $24 million of the total.
In their lawsuit, the New York State Common Retirement Fund and five New York public pension funds claimed that Countrywide hid how risky its business had become during the housing market’s boom years.
it’s not immediately clear how much the New York funds or other Countrywide investors will receive, New York City Law Department spokeswoman Connie Pankratz said late Friday.
Still, New York officials touted the deal, calling it one of the largest securities fraud settlements in U.S. history.
“This settlement vindicates investors who were deceived by Countrywide’s involvement in sub-prime mortgage lending,” Thomas P. DiNapoli, New York state comptroller, said in a statement.
The settlement approved by U.S. District Judge Mariana Pfaelzer in Los Angeles wasn’t good enough for some Countrywide investors, however.
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=255407
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