CIT Execs Pay $75M To End Investor Row Over Subprime Risks

Law360, New York (March 13, 2012, 9:27 PM EDT) -- CIT Group Inc.’s former executives on Tuesday agreed to pay $75 million to settle investors' proposed class action accusing them of concealing risks in subprime loans the business lender issued and of making misleading statements downplaying those risks and inflating company stock.

In a motion filed in New York federal court, the parties said the suit can be dismissed with prejudice and sought preliminary approval of the settlement. The proceeds of the deal would go to investors who purchased CIT stock from December 2006 to March...
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