New Century Shareholders Settle Claims For $125M

Law360, New York (August 10, 2010, 12:41 PM EDT) -- A group of shareholders of subprime lender New Century Financial Corp. has reached a $125 million class action settlement over misstatements and omissions with the company's officers and directors, auditor KPMG LLP and underwriters J.P. Morgan Securities Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc.

Judge Dean D. Pregerson gave his preliminary blessing to the settlement agreement in the U.S. District Court for the Central District of California on Tuesday.

Under the terms of the deal the officers and directors collectively will pay...
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