Doral To Pay $129M To Settle Securities Cases

Law360, New York (April 30, 2007, 12:00 AM EDT) -- Puerto Rico’s largest mortgage lender has reached a settlement in the shareholder class action and derivative lawsuits filed against it, agreeing to pay $129 million to bring an end to allegations that the company defrauded investors by overstating earnings.

Under the terms of the settlement, revealed on Monday, Doral Financial Corp. will pay $95 million and its insurers will contribute an additional $34 million. Individual defendants named in the suits will pay a combined total of $1 million in cash or Doral stock.

“Doral Financial has...
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