Bank of America Corp (BAC.N) has reached a settlement with former Countrywide Financial Corp institutional investors who decided not to join a $624 million class-action case that won court approval in February.
The terms of the accord were not disclosed in a filing in U.S. District Court for the Central District of California that was dated Monday. Countrywide's former auditor KPMG was not part of the pact, according to the filing.
Blackrock Inc (BLK.N), the California Employees' Retirement System (CalPERS) and other investors in July filed a lawsuit that alleged Countrywide and its top leaders perpetrated fraud in a quest to triple Countrywide's market share and enrich themselves at the expense of investors. Bank of America acquired the former sub-prime lender on July 1, 2008.