Finova Sits Out Thaxton Class Action Settlement

Law360, New York (June 5, 2006, 12:00 AM EDT) -- Three months after a crucial stay was lifted, the noteholders of bankrupt financial services outfit Thaxton Group Inc. have reached a $10 million partial class action settlement over the allegedly fraudulent sale of $120 million worth of debt to individuals.

Thaxton announced the settlement on Monday, putting to rest the group’s claims against accountant Cherry Bekaert & Holland LLP and law firm Moore & Allen PLLC.

Under the terms of the settlement, the defendants will now shell out an estimated $9,350,000 to Thaxton’s subordinated noteholders to...
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