Countrywide and KPMG will Pay $624 Million To Investors
Countrywide Financial Corp., the mortgage lender acquired by Bank of America Corp., has agreed to a $624 million settlement of a lawsuit accusing it of misleading investors about its lending prices. Countywide will pay $600 million and its former auditor KPMG LLP will pay 24 million to settle the class-action litigation. The settlement benefits investors who bought the lenders securities. Countrywide nearly collapsed as credit market tightened, before Bank of America agreed to buy it. According to the pension funds, the settlement that requires approval by a judge in Los Angles would be the 13th largest securities class action settlement since federal laws on private securities litigation were overhauled in 1995.