Countrywide Settles Class Action Fraud Suits

According to the L.A. Times, a U.S. District Judge in Los Angeles preliminarily approved a $600 million fraud settlement against Countrywide Financial Corp., while independent accounting firm KPMG has agreed to pay $24 million. The settlements would halt several class action lawsuits charging that the mortgage lender fraudulently covered up its increasing risks during the housing bubble. While Countrywide has denied allegations of wrongdoing, the settlement would ensure that Countrywide’s former CEO, President, and CFO would not be required to fund payments to shareholders. Countrywide continues to face other lawsuits and investigations, including one by the Securities and Exchange Commission.