Report: Countrywide Agrees To Pay $600M To Settle Class-Action Suits

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August 4, 2010 Wednesday

LENGTH: 157 words

HEADLINE: Report: Countrywide agrees to pay $600M to settle class-action suits

BYLINE: Pankti Mehta

HIGHLIGHT:

Countrywide Financial agreed to pay $600 million to settle several class-action lawsuits that claim it did not properly disclose the risks of loans it made during the housing boom, The Associated Press reported Aug. 2.

Countrywide Financial Corp. agreed to pay $600 million to settle several class-action lawsuits that claim it did not properly disclose the risks of loans it made during the housing boom, The Associated Press reported Aug. 2.

A U.S. district judge in Los Angeles gave preliminary approval to the agreement, under which Countrywide did not admit to any wrongdoing. The settlement does not cover investments in mortgage-backed securities sold by Countrywide.

The SEC will continue to investigate the company, former CEO Angelo Mozilo, former President David Sambol and former CFO Eric Sieracki, among others. The U.S. Justice Department and the attorneys general of California will also continue their criminal investigation against the company and Mozilo, the news story said.

Under the settlement, KPMG, the accounting firm that audited Countrywide’s financial statements from 2005 through 2006, reportedly agreed to pay an additional $24 million.

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