Countrywide, KPMG Reach $624M Deal In Fraud Case

Law360, New York (May 7, 2010, 9:37 AM EDT) -- Countrywide Financial Corp. and accounting firm KPMG have agreed to pay $624 million to settle a class action accusing the humbled mortgage giant of issuing false and misleading statements and mislabeling high-risk mortgage loans.

The New York State Common Retirement Fund said Friday that it had reached a deal that requires Countrywide, which is now a unit of Bank of America Corp., to cough up $600 million. KPMG is on the hook for $24 million.

The fund said the recovery, if approved by the U.S. District...
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