NovaStar Pays $2M To End Involuntary Bankruptcy

Law360 (March 21, 2008, 12:00 AM EDT) -- It will cost struggling mortgage lender NovaStar Home Mortgage Inc. $2 million to put an end to an involuntary bankruptcy petition filed by one of the company's competitors.

NovaStar said Thursday that it would pay $2 million to American Interbanc Mortgage LLC and two other plaintiffs to close the book on litigation stemming from a 2002 false advertising and unfair competition suit filed by American Interbanc against NovaStar.

The suit, filed in the Superior Court of Orange County, Calif., alleged that NovaStar and two other companies...
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