R&G Financial Settles Suits Over Mortgage Sales

Law360, New York (March 4, 2008, 12:00 AM EST) -- A Puerto Rico-based financial holding company said Monday that it has agreed to pay about $29 million to settle a shareholder class action alleging that the company and some of its senior officers engaged in “egregious accounting fraud.”

A judge must approve the settlement of the shareholder class action against R&G Financial Corp.

Under the settlement, R&G would pay the plaintiffs approximately $29 million. Insurers and some individual defendants – former and current directors and officers – would chip in another $11 million.

The company also...
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