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A federal judge on Monday granted preliminary approval to a $125 million cash settlement for shareholders of bankrupt New Century Financial, one of the largest lenders to collapse during the subprime mortgage meltdown. The settlement involves three stipulations: Auditor KPMG LLP will pay $44.75 million; the underwriter defendants will pay $15 million; and New Century's former officers and directors collectively will pay more than $65 million.
August 10, 2010 at 12:00 AM
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The original version of this story was published on Law.Com
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