BofA’s Countrywide Agrees to $624M Class Action Settlement

By Sarah Pierce

Countrywide Financial Corp has agreed to pay $624 million to settle a securities class action that accuses the mortgage lender of misleading investors about it’s lending practices. Countrywide, which was acquired by Bank of America after it nearly collapsed in 2008, will pay $600 million and its former auditor KPMG LLP will pay $24 million to resolve the class action lawsuit.

After the proposed settlement is submitted for preliminary approval, notices will be sent to all class members who bought Countrywide’s securities between March 12, 2004 and March 7, 2008. The final approval hearing is expected to be sometime in September, 2010. If approved, this will be one of the largest securities fraud class action settlements in U.S. history. [Reuters]

Updated May 13th, 2010

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