Wells Fargo, KPMG Settle Wachovia Suit For $627M

Law360, New York (August 5, 2011, 12:46 PM EDT) -- Wells Fargo & Co. and KPMG LLP have reached a $627 million settlement in principle in New York with a class of investors who claim Wachovia Corp. misrepresented its mortgage-based holdings after acquiring a California-based mortgage lender in 2006, an attorney for the plaintiffs said Friday.

The settlement, in which Wells Fargo will pay $590 million and auditing firm KPMG will pay $37 million, is believed to be the largest ever for claims based solely on Section 11 of the Securities Act of 1933, said David...
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